Sari,
Transparencies can be a tricky business, especially for someone relatively new to the whole thing. First and foremost, it depends on what format you’re trying to save in (I presume GIF since nothing else functionally supports transparency on the web).
So if you are trying to save a JPG with a transparent background, forget it – won’t work for web. If your image is already a GIF and has a transparent background, it should post fine with Front Page assuming you are looking at it in preview mode or looking at it in a browser.
What I always recommend is to use a transparency only when you absolutely have to. It is usually far easier to place your image on a background that matches your web page – usually.
That way, you don’t really have to futz with file format since some images look terrible as gifs, and *should* be JPG’s. Sometimes that’s not possible, like when you have a patterned background.
So bottom line? Tell us the file format. If it’s GIF, there’s no reason why it wouldn’t display transparent, provided you truly did have a "blank" transparent background. If it’s a JPG, you can’t do it (functionally).
Peace,
Tony