Say you have a image you want to make the background transparent.
load up the image.
go to save as for web.
Then in the color palate you select the colors you want transparent and select the transparent icon.
(for tattoos that are black select the bottom half of the pallet.)
then save.
Then open the new image.
and goto image -> mode -> select rgb color.
reclick on the layer picture -> select layer transparency
copy then paste into your template.