please help!

I tried looking in the memories, but they're not showing up, i think livejournal is having a glitch..

So, my question is, How do you change the background of an icon? I have psp7 and animation shop 3. Basically, I want to take this picture and change the background of it. I tried using a mask and it just didnt come out at all. Could someone please help me!

Thanks!