Use the magic wand (with continguous UNCHECKED) to select the white, then delete. Paste the picture of the woman on the top, and create a clipping mask relationship between the two layers. Add a drop shadow to the mask layer.

<<Switch to RGB!>>

Create a haunted collage, create two versions of the collage, add color to the uppermost one, clip the color version with a glowing circle.

Use a combination of layer mask and clipping mask to create the collage.

<<Switch to RGB! >>

This time, we will make a blank layer a mask, clip the squirrel layer with it, then paint on the mask to gradually bring the squirrel into view.