insert picture....

For this time i use character 'winnie the pooh' as my main picture. search from online and open it in AI. click picture, use live trace then expand the trace. like picture below.

For the second step, minimize the 'pooh' page. go to selection tools then click at the picture and drag the image to the main page of birthday card. after that deselect, goes to direct selection tool click at the image and click delete button at the keyboard and the white background will gone only the image will stay like the picture below.