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If your using PS , then click the jump to image ready button on the bottom of the tools menu. Then on the top right of image ready you will see the optimize window. Make sure that the 3rd pull down menu says web. Then cutout they smiley with the lasso tool. Go to file copy , then the file menu choose new... make sure you choose the backround to be transparent. Then paste the smiley in to the new picture. Then go to File/Save as optimized.
That should do it i think.