Need help softening edge for photo collage

Hi Guys

I'm trying to create a collage, will be my 10 high school anniversary soon and I really want to do this calmly before hand *ie. not in a rush as i do everything else*

the thing is i like this type of blending: http://www.flickr.com/photos/20976749@N03/3186348142/

but can't seem to replicate it with my own photos. I've tried reading up on various tutorials all over the net but most usually say to either use a soft eraser or vignette effect and i don't think the latter was used here and i tried the eraser and that just turned out ugly! Anyone with any suggestions on how to replicate this blending type. i tried the smudge tool but that too turned out badly *lol*

many many thanks for any help :-)

P.S i know the guy is highlighted but not worried about that. look at the background and see how the images blend into one another, that's what I'm after and it keeps eluding me

Try this tutuorial: http://www.photoshopessentials.com/photo-effects/photo-blend/

By overlapping the edges of the layers (each photo on a different layer) you can use the gradient tool to blend each layer together.

-Alex

Hi Alex

Thank you !!!!!!!! this is exactly what i wanted, i used to do this on elements a couple of yrs ago *combining images* but couldn't remember how to do it on CS3. thank you so much for this *huge huge hugs*

Alex, i tried the tutorial out but the thing is that where these 2 images have the same or almost the same shading/colour scheme being used, i don't have that luxury. when i'm blending the edges together, i can see the edge of one photograph against the other and I want them to blend seamlessly, I've tried looking up other tutorials as well but none is giving me the effect that i posted in the image or if it does, the image is far too faded *ie when trying to get rid of the edges, the image becomes too light*