Selected Images
First you'll need to find an image you wish to select. You'll have to open or paste it in to Paint Shop Pro.

You can use your own or try this picture of Shakira.
Next, You must select the freehand tool on the tool palatte. It looks like this

Make sure you have your tool options palette open and the settings are set as follows:

After you have followed those steps. You may begin to outline the image simply by clicking in one spot and tracing around the part of the image you want selected; Click by click.
When you're done tracing the image and have lined up with the spot you originally clicked on double click and the image should now be highlighted. It will look similar to this:

Next step is to feather the selection so use the drop down menu. Find selections >> modify >> feather.

A menu titled "Feather Selection" will pop up and will ask you to enter a number. You can use any number you want to get the desired effect however, I've noticed that 7 usually works. The smaller the image, the smaller the number and vise-versa.

Finally, it's time to copy the selection you just made and paste it as a new image or into the project you are working on.

And there you have it folks!; A selected image in paint shop pro 7.
*Don't forget to save your work if your satisfyed.
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