Cutting a picture out and putting it on something else?

1

I want to put a picture of my friend on a flash movie, but when I cut it out it cuts an entire box around the face and screws up the whole thing because the box is not transparent. I hope you understand what I mean. I’m using Flash MX 2004 and I always have photoshop 7.0. If you need any more information or have any questions just ask. Thanks in advance.