How do you blend two images together?

How do you blend two images together? I'm having alot of difficulty trying to "fuse" two Final Fantasy pics together in a wallpaper I'm doing, on Adobe Photoshop. I tried to smudge the edges of each pic but it looks really ugly that way. I can't "connect" the images together, so it looks much better and more "professionally" done. I really need help, and I'd really appreciate it if you would give me some tips on how to blend the images together. Thx

PS:Heres a link for a Final Fantasy X Wallpaper: http://tinypic.com/jakysk.jpg
The way that this wallpaper has its picture together, is what I want to learn how to do on Adobe Photoshop.

Well, probably the most basic way would be to pick up the eraser tool with a hugearse soft brush and simply erase away parts of one layer to reveal the layer beneath?

layer masks would offer a bit more flexibility than just erasing though...i'd check out this tutorial for some good basic concepts on how layer masks work, then feel free to ask us questions here.

chris