Here's our Microsoft Office Tip for.. May 1, 2000
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Eliminate the Fringe Around Transparent Images
In a recent tip, we explained how you can eliminate backgrounds from images using PowerPoint's Set Transparent Color tool. When you use this technique, you'll sometimes notice that your image seems to be surrounded by a slight "fringe" of background color that the Set Transparent Color tool hasn't eliminated. You can minimize or even eliminate this effect by editing the original image in a paint program so that the image's background is as close in color as possible to your PowerPoint background.

First, choose Format, Background; click the down arrow icon in the Background dialog box; and pick More Colors from the drop-down list box. Then, click the Custom tab in the Colors dialog box that appears and write down the Red, Green, and Blue values shown for your background color. Click Cancel to close the Colors dialog box, then click Cancel again to close the Background dialog box. Open your image in a paint program and change the background of the image to match the background color of your PowerPoint presentation. Save the image, then re-insert it into the presentation.

Now when you use the Set Transparent Color tool on the image, the fringe will be gone, or at least much less obtrusive.

Note: If your presentation has a background other than a flat color, pick the dominant color and try to match your image background to it.