No, I don't really know, but that's never stopped me from answering before, hee hee hee. I have Janome Digitizer Pro, and if I import jpegs I get a white background. If I'm manually ditigizing, that's no problem, but if I'm doing something quickly that's very simple in auto, it will digitize the background as well. So, before I digitize, I have Paint, and I make the background colour something like a neon green. Then, I go into the menu in Digitizer that lets me fix the picture, set the number of colors, etc., make sure I've got what I want in the photo. Auto digitize gives me the option of setting colors as fill, detail, or omit. I just omit the background that I've made neon green, and voila, no background. I don't know how photostitch works (neon green with envy, hee hee hee, I want it!), but if it's anything like Digitizer Pro, you might try setting the background to a color that won't be used in the design & omitting it. Best of luck, and a big big WELCOME to the Cute Community!!!! Marji

Hi Tyco, I use generations to digitise designs, and it has a box you tick when you are importing the design that allows you to NOT generate the background colour. It also has the facility to automatically pick the background colour, or for you to manually pick it.
Photostitch may have a similar function. Hope this helps.
Welcome to the cute site :)
Cheers, Claire

Sorry cannot help, but want to say welcome to Cute. I hope you enjoy the site even more.