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If you mean when opening a PSD file in Illustrator, try creating a new document in Illustrator and then using File > Place... to import your PSD. If the original file has a transparent background, this will be preserved in Illustrator.
I have to admit that I'm very far from being an expert in Illustrator, so someone with more knowledge will probably be able to suggest a better method.
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"I might join your century, but only as a doubtful guest"
Last edited by Tamlin; 10-07-2008 at 08:55 AM.
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