[jswdana]

Hi Folks;
I'm not even sure this is the right place to begin this discussion, but here goes. I am a fairly experienced Photoshop user, and have been thrust into (ready or not) magazine ads. I'm having a hard time wrapping my head around some of their jargon, especially "bleed" . Here are the specs:
Magazine Specs

* Trim 8.25" x 10.75"
Plus 1/8" Bleed (8.5" x 11")
* Image Area 7.25" x 9.75"

Ad Sizes

* Full Page 8.25" x 10.75"
(Image Area 7.25" x 9.75") This I understand

I guess I just need a good plain english definition of what "bleed" is first. I sent the first ads in 8.25" x 10.75" size and added 1/8" bleed, or what I thought was bleed. I thought bleed space was the area at the outside of the page that would be trimmed off in the publishing process?
I guess what I really need to know, is what is the best way to add 1/8" bleed to my page. Would I simply copy and paste my 8.25" x 10.75" finished image to a transparent ( or some other color) page sized 8.5" x 11"?
I know some of you pros are laughing right now, but have mercy on a guy thats got a lot to learn!
Thanks
Dana