How to create a composite image ?

If you place all your separate images in individual layers, you can create a blurred effect by erasing the border of each picture with a blur brush. Move the layers around to create your composite.

Keith

As in all things Photoshop there are more than one way to do it. I used to teach a segment on photo collage. I posted it at The directions are for photoshop cs so some minor differences might show up. Just use your images in place of mine.

...as imeldesign posted above, the use of layer masks is the recommended option as these are non-destructive and have better scope for late modifications, same with adjustment layers too...

...another thing to note with CS3 are the use of smart objects (right click layer > convert to smart object) or converting layers to smart filters (filter > convert for smart filters). To link a mask to these type of layers, first place the layer inside a group folder (third icon from right, bottom of layers palette), apply the layer mask (third icon from left, bottom of layers palette) to the group folder in the layers palette. This is then linked to the mask...

...the other option is to double click the smart object in the layers palette and apply the mask to the .psb image...

...layer masks work with shades of black (solid black becomes hidden, white reveals)...

Andrew