Resource Creation for R2K3 - Setting transparency color

Hi there,

Sorry if im being completely Noob on this BUT.
I want to create my own resources for R2k3 v1.08.
The problem i get is this, When i create the Images i got the correct sizes etc, but for some reason the Transparent layer always is visible, so i have a Boxed Blue box with my character animation running correctly,
What i want to know is how do i set the index that the BG color is a transparent color in R2k3?

Hope that makes sence. I need to know for all resource creations I've only looked at my battlechar sets so far but i think ill have issues everywhere.

Im using Photoshop CS3 if that helps.

OK think i managed to figure it out, The First index is used bu RPG2K3 to set the Transparency

So in the 256 color pallette you need to first ensure your First index is a UNIQUE completely unused color so not to mistake it somewhere else.
and if you dont set it and just design the charsets (battle/char/etc) then you'll probably have to adjust the image.
easiest way.

Set image to indexed mode and the first color you lay will be the INDEXED color. if your using Multiple layers before you index the image it should also use the first color used on the bottom most layer.

If im wrong on this please feel free to correct me Guys / Girls