If you make a picture into a transparent gif you can make it into a picture tube in PSP and keep the quality looking great!

To make a tube from a graphic with a white background open it and if it is a gif go to Color > Increase Color Depth > 16 Million Colors.

Next take the magic wand and click in the white area of the picture. Then go to Selections > Invert.

Now go to Edit > Copy and then Edit > Paste as New Image. It should now be transparent.

Next go to File > Export > Picture Tube
Leave all the settings as is (should be all 1's on the left)... give it a name and click OK. It should then show up in your tubes folder.

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