Here is a short tutorial on how to give your images a round corner instead of square ones.

Step 1:
Open your image and duplicate the layer.
Click the eye next to the background layer so it cannot be seen.

Step 2:
On the tools pallet select the rounded rectangle tool.
Set it to Paths like in the image below.
Set the radius to 15px. (Type in 15 in the radius box on the Options toolbar at the top of your workspace.)



Step 3:
Starting in the top left corner of your image, hold the left mouse button down and drag down to the bottom right corner. Release the mouse button.

Step 4:
On the paths pallet click the "load path as selection".



You can now delete the path by dragging it to the little trash can.

Step 5:
Be sure you are back on the layers pallet and have the duplicate layer selected (should be labled Background Copy).
Click select-inverse (or Shift+ctl+I).

Step 6:
Hit Edit-Clear. This will clear everything outside of the rounded rectangle.

Step 7: Save your image as a .gif with transparancy selected on the Indexed Color popup.
Here is before and after



Hope this helps you.

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