These are the starting images:
The background in the balloons image has been colored black with RGB values (0,0,0).  
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1 a.  Open the balloons image.  
1 b.  Unmask the black area of the balloon image using Mask>Set F2,F3 to Mask by Color.  
1 c.  Change color space to RGB Gamma 2.2.
1 d.  Store image Shift+F11.
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2 a.  Enter white (255,255,255) in top of Queue (hold control key down before clicking).  
2 b.  Color unmasked area white with Basic>Set Image to Color.
2 c.  Press I key to invert mask.  
2 d.  Enter black (0,0,0) in top of Queue (or alternatively check any (0,0,0) entry).  
2 e.  Color unmasked area black with Basic>Set Image to Color.
2 f.  Remove mask by pressing M key.  
The result should look like this:
2 g.  Apply Blur/Sharpen>Lens Blur with a radius setting of 10.  
The result should look like this:
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3 a.  Change color space to Log CMY.
3 b.  Press X and then open background image into the top layer, i.e., Layer 2 of 2.  
3 c.  Add layers (Layer>Set F2/F3 to Add/Subtract Layers).
The result (in Layer 2) should look like this:
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4 a.  Press X key to place Layer 1 on top.
4 b.  Press F11 to recall image saved in 1.d..   Note that this automatically changes color space back to RGB Gamma 2.2.
4 c.  Press M key to remove mask.
4 d.  Apply Blur/Sharpen>Lens Blur with a radius setting of 10.  
The result should look like this:
4 e.  Add layers (Layer>Set F2/F3 to Add/Subtract Layers).
The final result should look like this:
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