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Keeping these caveats in mind, Preview is a very handy tool for kicking out a quick edit for web or email display, or to save time (and money) over using software like Photoshop, especially if your normal workflow doesn’t require professional image editing capabilities. Using the Adjust Color palette only affects the entire image – there is no way to isolate the adjustments to a selection (as is possible in Photoshop).
Providing you are viewing an image and not a pdf, you will be able to use any of the tools in this menu (otherwise they will be grayed out, indicating that they are not available for use with pdf files). You can either: a) click and hold that button for a pop-up menu of all the selection tools, or, b) stretch the width of the Preview window causing the selection tools to line up side-by-side in the lower toolbar. The Edit Toolbar will display beneath the default toolbar revealing several useful tools, the Selection Tools button among them (see above). Access is to the tool is gained by first clicking on the Show Edit Toolbar button shown above.
With OS X 10.8 (Mountain Lion), Instant Alpha now is hidden away in its own toolbar and nested within with a group of selection tools.