Try using a utility called Knockout for Corel Draw. It works wonders and it's use is mainly feathering pics. JPEG or BMP. Doesn't matter which you choose. It'll give you great results.
I found out recently that I can't export files to JPEG if the file size is larger than 33"x33". I work with even larger files than that. I need to export them to JPEG to be able to reduce the file size on HD and copy them to CD for distribution to print shops and such.
Every time I try it...
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