transparency in Ps CS3

I am having difficulty with the final steps of selecting a transparency.

I have selected my object using the blue high lighter tool with the transparent background.

Then duplicate the layer and merge the layers.

Then save as a JPEG.

When trying to place on another back ground it appears white

What am I doing wrong?

belto had uiteengezet :

I am having difficulty with the final steps of selecting a transparency.
I have selected my object using the blue high lighter tool with the transparent background.

Then duplicate the layer and merge the layers.

Then save as a JPEG.

When trying to place on another back ground it appears white
What am I doing wrong?

Try saving in GIF or PNG.
A.K.A.I.K jpeg does not support transparency.