>>238885>Once the background is selected, hit delete.This is well-meaning but bad advice. Select the items you wish to keep using magic or lasso, then click the Add Layer Mask icon at the bottom of the Layers palette.
You now have a layer which has masked out everything else to transparency, including alpha masking the edges smoothly. You can export it as a PNG with transparency and if you really really need just a layer with no other content, hide all the other layers, select the layer you masked and Copy Merged then paste to a new layer.
Make friends with the masking tool.
