Avatar Help!

[Christopher Trueshot]

Ok i am usually a computer genius but this.... i just cant figure out. (the answer is probably right in front of me) BUT.....
I have been making a avatar for here but for some reason it just wont work!
as you can see in my avatar above, there is alot of white space behind it and when i cut the white out, it still comes back when i use the avatar on the forums.
(I thought it was just a matter of using the cut tool) anyone have any suggestions? (Btw i use Correl Painter X) the avatar is posted below.

And i tried to resize the image..... wouldn't work still.
errrr...... lol