Currently Being ModeratedApr 29, 2013 2:39 PM (in response to StuMannix)
In order to eliminate the background, you need to be working in a format that supports alpha channels, such as TIF, PSD, or PNG. I don't do GIFs so I don't know what is supported there in addition to JPEG.
Hope this helps
Currently Being ModeratedMay 1, 2013 10:18 AM (in response to RatVega™)
GIF does support transparency but it is only one bit (either on or off). That means there's no soft edges, just an abrupt cut off. I have never tried using a .gif in LiveType and no longer have it installed.
If your .gif is animated, it might be better to convert it to a format such as .png or .tiff and then reassemble the single images into a sequence in QuickTime Player 7 using a codec that also supports transparency.