If you want to start from scratch, you can use a simple paint program like Paint that comes with Windoze. If you have a piece of art you want to convert, you can download GIMP for free unless you have Photoshop or some other image processing program.
Final picture max size is 64x64 pixels. No need to set transparency, just choose color 176,176,176 (gray) for any part of the picture that should be transparent. After you save your picture (8-bit 256 color indexed), best thing to do is run it through another free program called Bright to index the colors properly. See
this picture for a comparison - top one is Photoshop's idea of indexing; bottom one is Bright's version. Notice the blockiness of gray around the top picture.
Name the file with the squad CO's callsign (like GameID.bmp) and save it in the Squads folder in AH2. You can also see everyone else's noseart files there too. Once online in the hanger, go to the O'Club and then Squad. The CO can then click "Upload Nose Art" and once HTC approves it, the rest of your squad will automatically get it.
If you change it later, your squaddies will have to delete their copy so the new one can get downloaded for them.
