Nicely done Mac,

Enter the Dragon 'Han' voice says "Your Skills are Extraordinary"

Thanks for the help

Froq,
Ive got PS7 too, and if you select the eraser tool (right click it) then select background tool, at the top of the screen should be a tool bar, where you can select find edges, as Mac has shown above.......
Perhaps you just missed it or the viewing settings are right, dont know for sure but it is on mine.