How do you import an image with a transparent background into illustrator?

I am using CS3 for both programs. I am editing the image in photoshop. I am on a PC. Also, what file type does it need to be? I tried an eps and it didn't work.How do you import an image with a transparent background into illustrator?
Its really simple delete the background layer...the checkbox should appear save it as .pds or .png...import anywhere you want...Cheers !!How do you import an image with a transparent background into illustrator?
You can do that in photoshop and also in flash to remove the background. select the image use the magic wand.











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