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and when I say foggy I mean do you want the entire thing transparent? if so just change the opacity. Do you want something regular but with a transparent background? Lots of differant things.
I would take the magic wand tool, hopefully you know how to use it..., and then select all of "Jack Borland", then go to the select menu and click inverse so then everything will be selected except for your text, then delete. Then you should be left with a transparent background with only your writing left.
i honestly have never bothered to look it up, but they have always worked just fine for me, and looked fine too. i don't really know if it makes a bigger file size then .gifs, but i've never had a quality issue with them.