Bringing photoshop layers into illustrator
EPS images are FLAT. Regardless if saved with a transparent tif preview.
If you were placing in InDesign, this would be a breeze by saving it as a format that supports transparency and placing that in InDesing.
Since you are dealing with Xpress, your two choices are to use a clipping path, (but that does not seem like a option because I do not think you want a hard line clipping path) or to build your background within Illustrator and place that as a whole into Xpress.
When saving to eps, the portion that dtp applications see is a flat file. When saving, it will successfully save the "flat" file honoring the transparent elements with other elements it contains within the same file. There are some issues to be aware of for Illustrator 10 and below files which are fixed with CS. Such as any transparency in a 10 file will cause any overprint attributes not to work with external elements of the file. They will still work with internal elements of the file.
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