How to make a cut-out.
Well first you can use any kind of picture.
Once you open it on PSP, click Freehand Selection.
And set the settings to the ones below.
Selection Type: Point to point;
Mode: Replace;
Feather: 1 or 2;
Smoothing: 3;
Check anti alias.
Then cut around the image on how you would like to make the cutout.
Then go to Selections on the top toolbar and click Invert.
Then simply click Delete on your keyboard. Then go to Backround Eraser and erase all the white shown.
Then press CTRL+D on your keyboard.
After that COPY it by going to Edit>copy.
And then PASTE it by going to Edit>Paste>Paste as New Selection; then you can make something out of it.