When I try it, the dotted outline around the image dissapears when I click onOnce you have the image pasted into MSPaint, use the Select tool (upper right on the toolbar, the dashed rectangle thingy) and select the area you want to save as an image by left-clicking/dragging.
Then Edit/Copy (or Ctrl+C).
Then Image/Attributes....
(I usually just set the image size to 1"x1") and click OK
by Duane Benson
by Robert Keim
by Don Wilcher