I have an image that is an oval with a white rectangle behind it. I have extracted the image from the layer and the white rectangle still shows up. This is a company logo that is an oval shape, I just want the oval image to place on a product without the white background. If I open the image in a picture viewer the background is not there, if I paste the image onto a black background there is white rectangle behind the image again. I am at a loss, any suggestions?

Try this,
1. Be sure to clean-up your image; that is erasing all the undesirable background.
2. Save your image as a ".psd" or ".PNG" (both of them works)
3. You can now place your image anywhere you want without the annoying white background.

It is saved as a PNG. IN Photoshop or picture viewer I can move the image around without the background following, but once it is placed over another image that is not white the background shows up again.