Meant for PSP 8
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Start off with your two images, usually I like to have them from the same photoshoot because it makes blending them easier, but whatever you can chose any pictures you want. Don't worry about size right now, we can work around it.
Make a new image(ctrl + n for newbies) 1024x768 and the background black.
Take the two images you started off with and layer them both onto the new image you just created. Your image should look like this:
Then take your eraser tool, and clicking on the top layer start erasing part of the picture that is covering the other picture:
Now you'll need to crop off any excess area surrounding the blend.
Now usually I blend enough so the nothing overlaps. Thats all there is too it. Then you can add effects to make it look something like this:
