From: Daniel Piechnick
Remote Name: 18.104.22.168
Hi Chip. You figured how to get the gif into your main image. The reason that the edges are jagged is because GIF files don't allow partial transparency - this means that a pixel is either fully solid, or totally invisible. Because you have these two types of pixels right next to each other, the point where they meet is very obvious - it looks like a jaggy line. I have an easy solution for you however - double-click the layer, and give it a small Outer Glow or a Stroke (an outline). These will mask the jaggy edge of your image.