In order to assign an Overlay Image to a template the image must be converted to a .png type (with a transparent background) and placed in the Template Overlays subfolder in your ProSelect Resources folder.

You can do this two ways:

1. Manually prepare the image and place it in the above folder
2. Use the "Import Using Photoshop" option in the window where you select the overlay image (in the Template Editor).

When using the second option, you will be asked to select the original image from anywhere on your disk. This file can be either a .png or a .psd file. ProSelect will send this file to Photoshop (which must be running) and get Photoshop to convert it to a .png (if not already) and save it into the Template Overlays subfolder for you. The image will then appear in the list of available template overlay image for you to select and use.

You may also like to see the article "Using Photoshop Templates in ProSelect" for more helpful information or the "Creating Overlay Images in Photoshop" & "Editing - Adding Overlay Images" pages in the ProSelect Reference Manual (quick access under the Help menu in ProSelect).