How do I create a logo (it's the name of my company) in Photoshop 8 so
that the background won't show up when I import it into yahoo
sitebuilder? I want just the text to show.

Hello strezlawton3,

What you want is referred to as a transparent image. The easiest way
to do this in Adobe Photoshop CS (version 8) is as follows :

1) Open up Adobe CS as normal. Once it is open, click on File > New.

2) In the pop up box, put whatever size you are going to make the image. Next, 
   you will want change the Background Contents to 'Transparent'. It's down
   near the bottom of the choices in the select box.

3) Now you have the beginnings of your tranparent image. You can type your text
   in over the transparent background.

4) Once you have your text as desired, select File > Save For Web.

5) In the pop up box, make sure you are saving as a GIF type image. Select
   the transparency box if it is not already selected.

If you are planning to use this image on a colored or textured
background, you'll also want to choose a 'matte'. This gives the text
(or image) seemless edges to blend with the background.

An example :

I have a website with a background color of #E1E1E1, which is a light
grey. I would select matte, and then enter #E1E1E1 in the pop up box.

To assist with this answer I used my first hand knowledge of Adobe CS.
If you are interested, you can read more on transparency (and
antialiasing) at the following website :

AntiAliasing and Transparency
http://www.lunaloca.com/tutorials/antialiasing/

If the text loge you are making is very light colored, you may have a
hard time seeing it on the transparent background. The work around for
this is to simply flood fill the background of the transparent image
to make your text visible while working with it. Once you are ready to
save the image, you can simply delete the background layer.

Please let me know if you need any clarification, I'll do all I can to assist.

SgtCory

Under the "Help" menu there is an "Export transparent image" topic. 
This leads you through the steps to do what is required.

This is actually pretty simple. You can choose a transparent
background when creating a new file, or you can go with a white one.
If you choose just the regular white background, add a new layer and
delete the Background layer. Now you can add your text on top of your
new layer which has a transparent background. Next, when saving your
image, you must save it as either a GIF or a PNG, becasue these are
the only two Web compatible image formats that support transparency.
Hope this helps.