Opened it up in GIMP and the tree seemed to be cut out decently well. There were definitely some places that needed trimmed/erased so that is probably why it looked like it did. I started to trim it but it was taking forever so I put the transparency on 'nicer' and it displayed without the outline. Thanks

Tried to use a backer on the png and it didn't work. Exported it to a jpeg and now it is working. It must be that pngs don't block out sketchy lines..