Ok.... I got it to look like your arrow, no problems.  I then copied and pasted into a new document. So I have the object plus background layer.  Do I just leave those layers, merge them, flatten whatever?    And you say i still have to crop the background out with <<select and <<color.

I tried cut and paste into ilustrator but still got the full rectangle with solid white background.

Its me I know I am not doing something I should be doing. I spend too much time in the creative zone and not enough on the technicalities.  Like I know what I want to do just trying to get it done evades me at times. :(