Rough edges
 

I can cut images out fine. The problem I have when putting that image onto a background, for a sig and such, is that the edges are really sharp and it doesnt look like the image belongs. I was just wondering what you use to make it a smooth transition. The blend and smudge and blur doesn't really give me the desired effect.

When you copy the images, apply feathering first. In PSP, you can do this optimally by selecting the area to copy through a multistep process with antialiasing off, then going to the selection menu, and choose transform|Feather then add a few px of feather.