For anyone using Red Bubble and trying to figure out how to use the t-shirt template, here's a tutorial explaining the template and how to create a .png file that retains it's transparency.
The tutorial is in pdf format, and it's rather long because it contains 3 sections, along with screenshots of many of the steps. In it you'll find Section 1, which explains how to make a simple text tee, Section 2 explains how to use your entire photo in a tee, and Section 3 explains how to remove the background from your photo to use in the template for a different style of tee.
While it might look confusing to those who've never used programs with layers and transparency, it really isn't. Print the pdf file once you've downloaded and follow it along while you have your program open - it will be very easy to understand.
The tutorial also contains links to download a free trial of Paint Shop Pro or the Gimp, and a link to a site for free fonts. To download a free trial of Photoshop go HERE. Scroll down to Adobe Photoshop 3 and click on the "try" button to get the free trial.
Download Red Bubble Tee Tutorial