For this tutorial we are using two of the sample images available in our 'free textures' area
Open the colour and alpha images that you wish to use in photoshop
Go to the alpha image and then hit CTRL A to select the whole
image, then hit CTRL C to copy the selected image. You can then close
the alpha map image.
Select the colour image and double click the layer icon 'background' and click ok to convert the background to it's own layer.
With the layer selected hit the 'Add layer mask' icon at the bottom of the layers pallette.
Click the channels tab in the layer pallette, and then check
the visibility icon 'eye' box for the new mask you created which should
already be selected.
Hit CTRL A to select the whole mask channel, and then hit CTRL
V to paste in the alpha map you copied in step 2. Hit CTRL D to
deselect everything.
Uncheck the 'eye' visibilty icon in the channels pallette.
Switch back to layers view by clicking the layers tab, in the layers pallette.
Right click on the layer mask icon of your colour image in the layer, and choose 'apply layer mask' from the popup.
Your image will now have the backgound removed, and should be saved as a .psd photoshop of .tiff file for future use.
With the new file open and the texture layer selected, just
click and drag the image onto an image in which you want it used, and
edit size and position as you wish from there.
