Being that time of the year, and people always want to know how to do this, I'll give you the quick and simple way!

First open up the picture you'd like to use of an ornament, and then open the picture of the person you'd like in it.

Then use the CIRCLE SELECTION tool and crop out the face(or what you want in the picture) out.

Then push CTRL+A(to select the whole picture of the face) then CTRL+C to copy it.
Go to the picture of the Ornament and open a new layer. Then Paste(CTRL+V) the picture of the face onto ornament picture.
HOLD DOWN the SHIFT key while reszing the circular picture. Holding down shift keeps it shape and doesn't distort it. Arrange it on the ornament where it needs to be.

Then go to the layers box and click on Layers Properties:

Leave it on Normal and turn down the slider until it looks blended in like a reflection......I turned the slider down to 114 on mine.

Now use the CIRCLE selection tool and go just INSIDE the circle of the picture you have, use the Move Selection tool to adjust........

Then push CTRL+i(the letter i as in eye, lol) to Invert the Selection. Then go to Effects-Blurs-Gaussian Blur, put the amount as 4-5 and it should "blend" the picture by blurring it.

And here is the finished product:

Please tell me if I was confusing or anything, I tried to be detailed and hopefully helpful to the newby's to PDN. :-)

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