Zubaz, bad news for you: you won't be able to convert that GIF to PNG and get nice smooth transparency. The GIF format is a flat file that probably has some anti-alised colour on the edges. It's part of the image and when you convert it to PNG it will be kept. You could do it somewhat but it will reqiure some work in Photoshop and may not have the best results anyway. You'll need first to change the image from Indexed Color to RGB, then to take the eraser or the lasso tool (with anti-aliased click on) and delete everything that you would like to be transparent. Then "Save for Web" and select 24 bits PNG. Could be a lot of work, but if you realy want to do it, it can be done. Results won't be perfect though, the best would be to get your hands on the original layered file if you can.
BTW: Note that if you are planning to make an object with a GIF you grabbed from the Net, it will most likely be rejected if you try to upload it here unless you obtain permission from the artist who made it, ot the company that owns the image's copyright.
