I'll get back to you. I used to use PaintShop Pro, a while ago. I used v8.0, but i'm pretty sure the fundamentals aren't too different with v7.0. Oh, and I advise you upgrade to Version 9. I have, but I never really need to open it up. Heh, PaintShop runs on everything, so I don't see why you shouldn't.
Anyway, like I said, i'll get back to you. About removing the background, though, it's pretty much the same between Photoshop and PaintShop. See what I said about selecting above, and refer to TeleIce's tutorial for more pointers.