From: Daniel Piechnick
Hi Eric. I'd be happy to answer your question. It's not all that complicated, so I couldn't really write a whole tutorial on the Photoshop Slice Tool. Cutting up your image in Photoshop isn't easy if you're using Photoshop 5.5 or lower. In that situation, you'll need to zoom in and select part of your image, Flatten all visible layers (on the Image Menu) then Crop it and Save for Web. Undo all those steps, select a new part of the image, and repeat. If you're using Photoshop 6.0 or Photoshop 7.0 (or the upcoming Photoshop 8.0) then the image can be cut up easily by making slices with the Slice Tool. Just select the Slice Tool, and draw rectangular areas on your image. Holding down on the Slice Tool on the toolbox will bring up the Slice Selection Tool, which allows you to select a slice, so you can resize it. All you need to do after that is Save for Web, and it will save all the images separately. (It also creates an html page and organises them for you, but I don't use that.)