How do I create a transparent background around an image in Photoshop CS2?

The first answer is correct although its never that easy. You can use the magic wand tool if its a background without alot of detail. The other way is to use the eraser tool. The best if you have an object that has wispy edges such as hair is to use the masking tool. Essentially you use different brushes to paint your background once you have the background painted you inverse the selection and hit delete.