This is the way I usually blend, but you can blend pictures by setting your top photo to "Screen." That's another way that I know how. If you have any questions, just ask. :)
I just found a plug in yesterday that will give elements layer masks. Go here to download. All the instructions are on the site. The download has some other nifty things I haven't had the time to try. Hope this helps.
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My Blend Steps
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I just drag my images into one document, arrange, and erase :)
here is a blend I made http://i22.photobucket.com/albums/b346/dqin/Banners/Mischa-B.jpg
password 'fizzy'
Its really simple once you arrange the pictures in place
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