I am trying to make a post card with an image and then the logo overlapping the image on the left hand side rotated at a 90 degree angle. My problem is that the white space in the logo covers up parts of the image. Is there a way to set the background image box to transparent but not the actual image itself?
You should open the logo in photshop if bitmapped, in Illustrator if it is vector and drop the background out in there. You can do this in InDesign, but the quality is not too good and knocking out the center of a letter "b,d,e,a,g, A, O" and such is not even possible. If you want to try in InDesign:
On a linked image go to object >> clipping path and turn on detect edges.