What is the best way of making a transparent shape in Illustrator? I've basically got a graphic which needs a shape cut out. This is going to be placed on a coloured background once printed. Any ideas?
You'll create a solid shape where you want it to be cut out. Then you'll place this shape exactly on your logo where it will be transparent. Select your logo, then shift click the shape you created. Then open your pathfinder tools under the window menu. With both your logo and the new shape selected (with the new shape in front), select the "Minus Front" button. It looks like two little squares, the first one being filled in and the second one being empty. This should do the trick.
i am not 100% sure what you asked but for the picture to be transparent you need to save it as png transparent if you meant you want like make an hole in a shape you can use the mask option or the pathfinder