1 - open a picture
2 - add a layer mask
3 - Paint the layer mask (black = transparent, white = opaque)
3 - save the picture in png (answer yes|ok to dialogs boxes)
4 - load the texture in blender UV editor
5 - Put the texture on a plane in face selected mode.
6 - press alpha
7 - You’ve got it
Well, for photoshop it’s just making a layer which you use as background and is transparant. Now make another layer, paint something, like a bunch of leaves or grass. Save as PNG, open in blender, add to some faces, hit alpha in editbuttons when in face selection mode where you added that textures, hit the Copy Drawmode, and it’s done
I also like using blender itself set to render as rgba and save as tga for alpha textures. Good idea to post this little tute by the way, its a very often asked question it seems.