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Blending In Photoshop ii

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01. Right, to begin with lets overlap the two images. If it helps, lower the opacity of the top layer to about 70% so you get an idea of your placement. When you're satisfied, take the opacity back upto 100%. (screenshot)

02. We're going to be using the Lasso too to make a selection. This selection will be what we're going to remove. (screenshot)

03. Right click inside the marching ants and select Feather... A box will pop up: Change the feather radius to about 20 pixels. This part may take a bit of experimenting depending on the size of the selection and stuff. 20 pixels is a good start though.

04. You'll notice that when you click OK the marching ants seem to become slightly more curved around the edges. Press Delete on your keyboard to remove the background inside the selection. (screenshot)

Repeat this step until you've cleared out parts of the background that need removing. For finer details that are tiny and need removing you can use the eraser. Crop, merge and decorate! :D