Okay, I'll try to make a long story short. I use PS elements 8 (yeah I know that barely counts a PS).
I make textures for a video game mod, and I came across a problem. To help explain I quickly put together this little gallery because I can't explain my problem in words, it would take 5-6 paragraphs. http://imgur.com/a/WXfMt
The last image is the actual Yellow eye texture that has the weird transparency. The transparent part has no colour when you use the eyedropper as you would expect.
Interestingly if I open the Yellow eye image in PS and save it as a png it removes almost all of the hidden pixels. All that remains is a rectangle around the eye itself. Any help on how to save pngs in the same way that is used here would be invaluable to me. Cheers!