For this you need the supplies here:

included in the zip are several images;

2 mask

and the fantastic Machine Filter (paint engine) which is optional

 

ok lets get started:

open one of the images up in PSP;

open the 2 mask up in PSP

place the Pe.8bf file in your plugin folder

place the configuration file in C: windows

instructions is included

 

 

now on the image go to layers and promote to bkg layer

duplicate this layer

 

now add new raster layer and fill with white

move this layer to the bottom

 

at this point you should have 3 layers

2 images and 1 white

 

hide the top layer (the copy of the image)

click on the original image layer at this point it is the middle layer

 

For PSP 7 do this: got to effects --blur gaussain blur set at 6

For PSP 8 and above: got to adjust soft focus use these setting

 

Softness 100, Edge Importance 50, Check Include scattered light,
Amount 76, Halo Size 50, Halo Visibility 50.

 

While on this same layer go to Effects/Fantastic Mashines/Paint Engine/
and use the drop down menu to find the Pastel Sponge preset. Click Apply.
Change the opacity of this layer to 40.
(Version 7 use an opacity of 20)

 

(If you find you have no presets, you'll need to go back to the
zip file and copy the fmachine.ini file to C:/Windows.)

 

 

Turn on your "Copy of Raster 1" and go to Layers/New Mask Layer/From Image. Find
gh_OvalBlurMask.jpg in the drop down menu, check Source luminance only and click OK.
If you are using Version 7 go to Masks/New/From Image, then Masks/Delete. When asked
"would you like this mask merged into the current layer?" click Yes.
Right click on "Group-Copy of Raster 1" and choose Merge/Merge Group.

 

Go to your Layer palette and turn off your Background layer, go to Layers/Merge Visible.
Turn your Background layer back on. While on your Merged layer go to
Layers/New Mask Layer/From Image. Find gh_tornedges.jpg in the drop down
menu, check Source Luminance and Invert Data and click OK.
If you are using Version 7 go to Masks/New/From Image, then Masks/Delete. When asked
"would you like this mask merged into the current layer?" click Yes.
Right click on "Group-Copy of Raster 1" and choose Merge/Merge Group.
Go to Layers/Merge/Merge Visible and you are done!

another version of this:

 

 

you can always use any image on this it will work with everything

 

Enjoy