Why has my image got these transparent pixels around it?
It is a drawing that has been photocopied then image traced in Illustrator then moved over to PS to fill in bits it's missed but i'm not sure what to do now. Do I just carry on how it is and hope for the best when its done?
Would you show the layers panel. Make sure the layer underneath is in full white. You may used cut command. Make sure that the backgroun layer in Ps is white without cutten pixel before moving the artwork back to Ps.
Do I just carry on how it is and hope for the best when its done?
Yes, carry on. Illustrator is vector. When you bring it into Photoshop it is raster and you see the softened edges. Instead of viewing the image at 8800% in Photoshop, change the view to 100% and it should look fine.
If you turn on Pixel Preview from the View menu in Illustrator, you will see the same thing.
If you want the crisp edges that you get from vector, keep it in Illustrator.