I posted several questions about creating a transparent background using either an imbedded alpha channel or a gif animation. I kept on checking back but with no luck, So I did figure it out on my own. What I was trying to do was create a travelling matte in After Effects my only mistake was thinking that the alpha channel would be imbedded into the original image files, Instead After Effects uses the travelling matte and references the original avi to the binary content in the timeline. So anyone wishing to seperate a character or something from a background should look into the TRAVELLING MATTE, and if i'm not mistaken the film industry uses this technique to remove actors from green or blue screens.
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