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Step
1:
Open the image in Paint Shop Pro that you will be working
with.
Step
2:
We first need to create a new raster layer to our image.
To do this click on (Layers > New Raster Layer) in the
top toolbar.
Because I
wanted to achieve the faded effect around image and not
just an oval edge I used the (Free Hand tool) and had
selection type set to (Point to Point) and feather set
to 50. The size of feather depends on the size of your
image, e.g. - if your image is smaller use a smaller feather,
if your image is larger use a larger feather.

Step
3:
With the above setting selected, click around the area
you want feathered (or faded) ending where you began.
You should now see running ants around your image. You
should have noticed that the running ants went wider than
what you had originally selected. This is because of the
feather setting we selected. Because we set the feather
at 50 the running ants went 50 pixel's wider than what
we selected.

Step
4:
Now click on (Selections > invert) in the top toolbar.
This will move the running ants.

Step
5:
There is just one more step to this tutorial. Simply click
on (Flood Fill) and fill the selection with a color of
your choice by clicking anywhere within the selection.
I chose white to blend in with my background.

That is it!
Don't forget to save your image before closing it.
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