1. Decide what image you're going to use, obviously. Here's the one I'm going to use:

2. Okay, first make one image the background. Then put the second on top of it as another layer. Like this:

3. Then erase all the junk around it that you don't want to get faded in.

4. Take your eraser brush, set the opacity to about 40-60. Then erase all of the second image on top. It should come out something like this:

Now you are done!