You can check this by clicking on the #1 in the layers window – you should just see the check pattern which denotes transparency. But note that the alpha channel containing the blurred T-shirt hasn't been erased; check this by clicking on #4 in the channels window.
But it can be improved a lot more...
To overlay an image on a textured background:
|Tutorial||T-shirt by Chris and Lee|
|Created||5:18pm Sat 14 Oct 2006||Last modified||5:29pm Sun 22 Oct 2006|