keyboardsamurai wrote:I just read up on the lasso cut out tool Will try that on next image..
You'll actually want to use the Magnetic Lasso tool more than the regular one. The Magnetic one can determine the edges pretty well and cut your image out more cleanly. You will still have to watch for where you need to add your own anchor points at times and you might still need to use the Eraser to clean up some of the edges, but Magnetic Lasso is one nice tool.
Also, you might want to try lasso-ing the first image (using Magnetic, to separate it from the white background), copying the image, then using File->New->Image From Clipboard to paste your copied image onto an invisible background. Then, use the Background Eraser to clean up any artifacts (left-over pixels of the background), if any.
From there, you can now just select and copy the entire image with the Box Selection tool, then paste your image onto the second picture.