Okay, this is one I've wanted to know for a long time, and is used frequently in web pages. How do I take two images and sort of run them together? You know, like make their edges overlap and fade into each other? I know I'm describing this terribly, but I hope you understand me. I can't find any examples right now, unfortunately.

This is only similar to the question I asked some time ago about creating transparency in images.
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Matt