How to form border around image within a image?

Hello All!

I have a jpeg I want to edit. By edit I mean that there is an
'item" within the picture that I would like to extract and have it by itself. Is this possible to do with Xara Xtreme?

If so would you mind telling me how?

Thank you.

I have the same intentions. Supposing there is a solution is it possible to transform this kind of lasso selection into a shape?

Have a look at Egg's video tutorial here:
http://www.youtube.com/watch?v=G8XgHkZo1J8

I really appreciate your reactivity!
Thanks Sledger.:) :) :)