Hmm... Tried the png... it seems like the transparency works in some places but not in others. For instance, it worked when I viewed it with windows viewer and when I viewed the image individually in photobucket. But on the main page of photobucket, it had a black background, and you can see the results here.
It gave me a lot of options when I went to save it, maybe I didn't select the right ones.
Oh and I did look for a dithering option to save it as a gif, but there wasn't any... but I'll check out the dithering options for when it gets converted from RGB to indexed.
Edit: This is what I came out with after playing with the dithering options:
I'll probably just abandon the airbrushing thing if you guys don't have much more in the way of suggestions.
Thanks for helping me with this.
![Smile :)](./images/smilies/icon_smile.gif)
I'm finally back for the summer, although hopefully I'll spend a little more time away from this screen.