How to crop circle in photoshop

I'm having a Dell laptop on which Windows Xp has been running as my operating system. Recently i had installed photoshop on my system and want to to crop something in the middle of the picture into a circle shape. I had tried putting the eliptical tool and getting the right shape, but was not able to corp circle on that particular picture. Can any body tell me that how can i crop and save it as a circle without a square border in photoshop? Let me know the correct way for doing it. Any kind of help on the above issue would be appreciated.

I think Photoshop Elements has this feature, though I haven't used it. Cropping can always happen in rectangle because in photoshop canvas cannot be circular. Only option would be a transparent background with the circular image.

Photoshop and Gimp have select tools that can draw elliptical selections. In most cases, though, the basic way is to create a circular selection, invert the selection, and erase or delete what is not in the circle. Just select the rounded part in the middle then copy+paste into a new image. Fill the background layer with with any shade of black you like. You will need to save the result in a format that supports transparent colors, such as PNG or GIF, otherwise you will still have a rectangle with blank corners.

Select the portion of the image with the elliptical tool and then invert your selection. After you select the circle part with the elliptical tool, right click and then you need to select "Make Selection". After that you need to hold the shift and Alt keys while you drag in order to get a circle. Then 'ctrl+J' or 'ctrl+shift+C' and 'ctrl+v'. to get that circular image in a new layer. Now delete everyother layer, and crop it.