Need advice on how to blend 2 layers

Can someone advise me how I can blend 2 image layers

Specifically, I want to have one image in the middle, let's say this is of size 300 x 300 pixels and let's say that the image under is 600 x 600 pixels (and that the smaller image sits on top of the bigger image in the middle)

I want to:

1. Blend from 50 pixels in the middle image to 50 pixels out onto the larger image

2. Blend from 50 pixels in the middle image to the edge of the out the image - not sure if there is any difference between the 2

Not sure if any of the above makes sense!

See the image below:



The first black line show what I mean by point 1 and the second point 2
(Not drawn to scale!)

I'm hoping someone can make sense and give me some help!

Thanks


OM

What you want to do is use something called a layer mask. Go to Layer-> Create new layer mask then it's pretty easy after that.