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Is it possible to convert a GIF image with a solid background to GIF with transparent background?

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Yes. You merely have to remove the background from the layers/frames.

Or set a transparent color in the Save For Web dialog....

In the Save For Web dialog.. click the color (or range of colors by holding Shift) in the Color Table which you want to be transparent... then click the little Transparency box below the Color Table... that color is made transparent.

enter image description here

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