- Using Photoshop, open up the bitmap image and select the Magic Wand.
- Select the area that you want to make transparent
- Invert the selection with CTRL+Shift+I
- Go to the Channels tab and check if there's an Alpha channel
- If there isn't, go into Quick Mask mode (hit the Q key) the Alpha channel should show up now
- Go to File > Save As, and save it as another bitmap image and make sure Alpha Channels is checked, you may overwrite the old bmp.
- Ingame, your emblem should now have transparency like mine: