Check here for the fading/blending info http://blogs.msdn.com/expression/pages/blending-photos.aspx
Design does not have the 'magic wand' tool, but you can edit an image: info here: http://blogs.msdn.com/expression/pages/removing-backgrounds-from-photos.aspx
More tutorials :http://expression.microsoft.com/en-us/cc197142.aspxRegards,
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