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On a white background the logo looks great, but on my webistes colored background the edges look frayed with white noise surrounding the intricate parts of the design.
What should I do to have the logo display cleanly on a coloured background?
It takes longer to describe than it takes to actually do it, by far... and the "halo" around the edge of the GIF image should now match the background of your site.
If that all sounds greek to you, ask the designer to do it. They should have provided you with a copy that matched your site background to begin with, if that's what you were going to use the image for.
The method mivox explained will work well unless a definite fade effect has been applied to the edges. If so, you may need to "feather" your selection (you made with the magic wand tool) a few pixels to soften and smooth the edges of the area you wish to preserve, and also add a degree of transparency that will display better when you place the color you want for your background behind it.
This works best if the original image is a fairly large one.