Merge/Merge All (Flatten) layers with the green color (or your color) on the palette flipped to the bottom.
Merge/Merge All (Flatten) layers with the green color (or your color) on the palette flipped to the bottom.
Now here is an extra step I take because it's saved me some problems down the line. With the background green color still on the bottom, use the magic wand on your text image. Click on the background area and delete. If there are any closed areas like an A or an O, use the wand there too. Now reduce this image to 256 colors. Make sure that background color is on the bottom of the palette, not the top.
These are the settings that I have found give the best results when reducing to a gif.
Now you are ready to proof and set the transparency.
If you've followed these steps, you will have a perfect set of grey
blocks.
Say ok and save as a gif.
Now, if you want to test how it looks, copy that saved gif.
Paste as a transparent selection on your background image.
