Hi

FotoMix is a freeware tool to mix and manipulate your photo collection with ease. You can add a variety of effects to your photos with this utility like remove, add or alter backgrounds in the current picture, create collages, wallpapers or CD/DVD covers. The result that is so high in quality that it is almost impossible to tell if the photo has been manipulated or not. Once you are done with the editing, you can print them, email them to friends or transfer them to T-shirts, mugs, calendars, etc.

http://www.diphso.com/FotoMix.htm