You could try magnifying the image and then using a very small Paintbrush to paint out the white edges. Since your background is a gradient, use the Eyedropper to select paint color frequently to get a good match. Alternatively, use the Lasso to make a selection of the object, right click and convert to object. Hide the base image (View, deselect show base image). Zoom in and erase the white pixels with the Object Paint Eraser. http://www.talkgraphics.com/images/smilies/smile.gif

Stephanie's PhotoImpact Tutorials
PhotoImpact 8 and 7 Classes