Unwanted Black Area

Hello all I am having a problem with a image that i have created using Photoshop 7. Here is the image, the part i am having a problem with is the black around the outside of the image. I have highlighted the black spots but generally they are around the entire cocpit. I have seen other 2d panels in FS that do not show this problem. does anyone have any ideas what i am doing wrong. thanks

You say the image was created in Photo Shop 7 - this image would then be included in a particular texture folder as a bmp file. Correct - so far? Without a copy of the original Photo Shop 7 layered 'psd' file, it is difficult to determine what to do. I am assuming from the image shown in your post that it is a screenshot of part of the cockpit, (because of the sky background).
Photo Shop 7 has tools which would enable you to highlight and/or define the black border that you do not want - it may even be allocated it's own layer name - when highlighted/defined - delete or change the color to match the adjacent green section. Which ever you prefer - changing the color would, of course, make the green cockpit border wider.
Without more detail, this is the best I can do.

Guest, Thanks for the reply if you want i will end you the PSD file so that you can have a look at it first hand. I am begining to think that it is the Blending option that i used. but like i said send me your email and i can send you the PSD file then mabey you will be able to see my error much easier. Thanks Again.