well the story begins when i had to place some car parts (fly-wheels) online with a white background. The problem, i didnt know how to get it perfect. I tried doing it through photoshop but it was not giving me the result i was looking for until it occur to me why wont i just transfer the files into illustrator instead. Since Illustrator doesn't not work with pixels its a straight line any way you put it.
First open the file in photoshop and save it as an eps. Open the file in illustrator and place the file in layer 1. Now select the object and lock it. With the object now locked go over with the pen tool (no fill) around the edge of the object. once done fill in the shape. (any color, doesn't matter). select the shape and transfer the shape into a new layer (layer 2) on top of the graphic (cut and paste in place works best). Select the shape tool and draw a box around the document with a white fill-in, place the box on the same layer with the fill-in shape (layer 2). The final step is to select both (graphic and the box) > go to the pathfinder box and select cutout, once done you should have the box with the cutout of the object within, which will give the perfect look of a white background. If you guys couldnt not understand please feel free to drop me a line and i will try my best to explain.