Problem : PS7 gray

This is probably in the memories, just about everything is, but I couldn't find it (of course)

I am attempting an icon in photoshop 7 in RGB mode but I want the image to become a gif so as to keep transparency.

When I use the paintbucket the colors come out as this :

ex.


If I use white as my bkg when opening a new document I can use the color :

ex.


this is really bothering me I think I may have done something to the settings but I didn't mess with them at all. If anyone can help that would be appreciated very much. And if more information is needed to pin point the precise problem I would be more than willingly to provide.