How do I make an image transparent in preparation for placing it in InDesign?

First off, a big thank you to ja3754 for the great help with a previous question. : )

Now back to the challenge at hand...

I have an image of the Vitruvian Man.

I am trying to have a situation where I keep the line work of the drawing but get rid of the parchment or gold-ish background, in effect making a transparent image.

I think it might have something to do with using either the magic wand tool in Photoshop or the Live Trace feature in Illustrator or maybe both. However, after much looking around and viewing of videos, I still can't piece together a solution on how to do it.

I am also trying to simplify the line work of the drawing so it looks a little more "graphic" or logo-like.

This kind of simplification, in this case, involves mainly two things:

1. "Erasing" the finer line work around the body and between the arms and legs.
2. Widening, thickening, strengthening or filling in some of the line work (like on the circle) so that the line has more equal weight all the way around the circle, not just on the bottom half of the circle.  

So, this is what I have to start with:

And I am trying to achieve something like the following:

or something like this:

Thanks for your help and advice!