PhotoImpact works somewhat differently with eliminating backgrounds to other image editors. If you first want to subtract a background, start by copying and pasting your unretouched image to a New Image with a transparent background and select "Active Image" which will give you a transparent canvas the exact size as your source picture. From this you now paste your image you are editing and now you can eliminate your background with the eraser tool or background eraser tool or use the mask mode if you prefer. If you past the image to this file that you want to be your new background, you can drag it underneath the image you were removing the background from and see actively your new image as you are erasing or working in mask mode.
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