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This is where I'm getting confused. How do I create an alpha channel from an image that's not currently got any transparency in it?

Can you go step by step? I currently have just the simple...

I tried this, and it doesn't achieve the effect I need.

The image is not purely just black and white. The edges are anti-aliased and so there is a slight gradient at the edge, with some pixels in...

I am wanting to know how to work with a piece of black and white line art to make the white transparent. The problem if I just simply select the white space, with a tolerance of, say 20, it leaves...