Problems altering an image

Hi, everyone:

I have very little graphics experience, but I've worked a bit with 
the demo version of Paint Shop Pro 5.  I am trying to take a graphic 
that currently consists of a white background with black stylized 
line drawings of little people and do a number of things to it:  make 
the line drawings white on a transparent background, and make the 
image much smaller -- about 25% of its current size.  

Using my very limited knowledge, in PSP5 I first negated the image, 
then made the background (now black) transparent and this seemed to 
work in that the little people were now white and the background was 
transparent.  However, when I resized the image to the much smaller 
size, some black remained around the now white line drawing of 
the little people, and the drawing itself became very ragged.  I 
tried ordering these steps differently to see it that would help, but 
it hasn't.  Is there a better way to do this?  

There is an example of the original graphic I'm working with at  
http://www.lfcc.on.ca/logo.htm, while the resulting .gif is at 
http://www.lfcc.on.ca/logo2.htm.

Any help you could give me would be much appreciated.

Trish Dick
trish(at)lfcc.on.ca
http://www.lfcc.on.ca

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