Actually I've never used Photoshop, but I hear from a DTP expert that it has
a function called  "clipping paths" which can be used with an EPS (sorry I
said TIFF in error) to tell your layout software (e.g. Quark, Scribus) which
areas to set transparent.  Thus far I've used transparent PNGs for this
effect but it's not particularly reliable.
--
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http://www.nabble.com/Clipping-Paths-t1413752.html#a3811466
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