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try "trim"
Suzanne,
In photoshop, if you have any excess space around the picture, even if it starts out transparent, it will turn white when you save it as anything other than a .psd or .png.
There is a feature in the program called 'trim' - just click the 'image' drop down list and choose 'trim' toward the bottom. In the 'based on' box, click the radial button next to 'transparent pixels', and in the 'trim away' box make sure all 4 boxes are checked.
Hopefully this will help, if not let me know and I will see what else I can come up with.
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