Transparent Forground showing up with an "Edge"

Hi All! I'm working on a expression project where I needed to cut out a piece of the background, and use a corner of sheet of paper as a foreground piece. This way the dynamic text is slightly covered, to add the realistic look. I opened the background image (a Tiff) in PS, and cut out the piece i needed.

I did cut out the piece with a hard edge... but I have tried the feathered edge andd had the same problem....

Saved it as a TIFF with transparency, without touching ANY other settings.

When I apply the foreground its in the perfect spot, yet I see a very tiny gray line around the forground cutout piece. I don't understand what I'm doing wrong and getting this "outline" of the foreground layer.

I need it to be seamless.

Please give me suggestions ASAP. I'm trying to get this to work out.

THANKS! Bill

I'm an idiot. While I used an eraser to trim the little area I was trying to use in the foreground, and selected no feathering on the tool, the eraser was in brush mode. This feathered the edge on the TIFF foreground with the transparency, making the graduated gray line appear around the overlay image.

I went back and changed the eraser to block or pencil mode, and presto- it cleaned up the edge for the overlay, and no more gray outline shadow.

Sorry everyone. Perhaps this thread might help another "beginner" designer in FE in the future.

Bill