Hi Ray, getting rid of the halo is much easier than a lot of people realise so here's how to do it.
~ Using the original .psd file so you have the tree on one layer and the sky on the other, select the layer with the tree.
~ Now, looking at the layer, hold down Ctrl and click on the ICON in the layer (that's the miniature picture of what is on that layer)
~ You now have the tree selected - see the marching ants around the tree!
~ Ok, now just go to Select > Modify > Contract and enter 1 pixel
~ The selection has now contracted and should be just inside the edge of the tree, with the blue halo on the outside of the selection!
~ Now press Ctrl+J to copy the tree to a new layer. This will copy the tree but not the halo so just delete the original tree layer and you've got a tree with no halo
Hope you find that useful. It's a very handy technique for getting rid of haloes, fringing, etc.
Cheers,
Rob