Merge 2 images see outer background and middle image as one

Hello
I am new to Photoshop I have Photoshop cs.
I want to merge two images with each other.
One image the outer bit I do not want only the main picture in the middle.
I am merging this middle image onto a second simple image.
I want to see the middle image perhaps turn it around a bit and also see the outer part of the image I put the middle image onto.
Very grateful for step by step instructions how to do this.
Can we post pictures here I can post examples?

Ok. For explanation purposes I'm going to designate the images "pic1" and "pic2."

The short version goes like this...

1. open both images
2. select the area from pic1 you want to keep...using the selection tools (marquee, lasso, etc.)
3. when the subject is selected from pic1, get the move tool
4. click and hold with the move tool inside the selection "marching ants"
5. still holding with the move tool, drag selected area to pic2
6. let go with the move tool and position as needed.

to rotate...
1. go to the Edit menu and choose Transform>Rotate
2. outside the control box click and rotate as needed.
3. double click inside the control box to finish.

I hope this helped in some way. Of you have any glaring questions or need a better explanation, just say the word.

Hello Will try later.
Wondered how do you sharpen up edges of a middle bit of a picture you extract?
Read something quick about layers blending could you do it this way and brush out the bits you do not want? However I would need step by step instructions.
Thanks

Hello
I tried that and when I used move tool to drag into purple background the object in pic 2 I dragged turned purple too. I want the original colour.
How to keep original colour please?

Make sure that your pic is RGB by going to image>mode

Are you sure you used the move tool? Second from left in the top of the toolbar? Because if you didn't change tools you might have only dragged the selection outline.

Geassel's post is also appropriate, make sure you check both images are the same mode.

Extract doesn't work very well, I mean it is ok if you are in a hurry, but if you have time I would suggest a layer mask.

I did a google search for "layer mask in Photoshop" and came up with too many tutorials to list here, but on first glance this one seems to cover the basics.

http://www.myjanee.com/tuts/layermask/layermask.htm

I wish you much luck.

That is flippin marvellous help
however for the experienced which I am a complete novice perhaps if you can post pictures hree with posts then I can show exactly what I want then perhaps someone can do step by step instructions. Been looking how to post pics but cannot see anything.
Thanks
TImecontroller