Made this image for the Minecraft 1.8 skin format:
__2 = "hat" layer (LL2 = Left-Leg floating cover)
F = Front
L = Left
R = Right
B = Back
O = Outer
I = Inner
T = Top
U = Under
p = palm
f = foot
The first image is just for reference, though.
Here is the image you should be editing (this one, I can't take credit for):
Hope this helps a ton!
[Edit: 9:55pm CDT - I derped on the body sections. Luckily, since the first image is actually linked to an image on my Dropbox, it updates automatically in this post when I tweak in on my computer. Now the Front of the body has Left directly next to it, as it should be.]
Seems you saved it improperly, leaving a bunch of white color in the spaces that should have been transparent. Make sure you're using a program that supports transparency, such as Paint.NET. If the covers are literally not showing at all, try looking in your Minecraft settings - there are options to hide the cover layers of each limb.