Clipping paths in PS

Alright guys, its has been awhile since I used the clipping paths in PS. Please help me refresh my memory.

I need to clip out an image in PS and place it in AI without having that annoying white box around the image.

Can I use the marquee tool instead of the pen tool to make a selection in paths and using the clipping paths option?

-SP

Either one. If you use paths, you have to convert to a selection anyway. Use whichever tool you're comfortable with.
If you use the marquee, use Lasso.

You could also command-click the alpha channel of the image, command-J to dup the layer, and it's already clipped for you!