How can you edit photos like this?

Question

http://i30.tinypic.com/2ir83zr.jpg

I had someone on Yahoo answers make me a photo like this before and I want to know how they did it... details are a must please =P

this was the center photo

http://img120.imageshack.us/img120/3986/dtij9.jpg

and these were the backround photos

http://img174.imageshack.us/img174/8534/dt4fd1.jpg

http://img174.imageshack.us/img174/4614/dt3aq6.jpg

http://img247.imageshack.us/img247/9208/dt2hk2.jpg

http://img174.imageshack.us/img174/2091/dt1qd1.jpg\

10 points to best answer, whoever helps me learn to make these =P

Answer 1

in your graphics editing software of choice, you place each image on a separate layer in their respective positions then use the eraser tool to remove the edges of each photo, giving them a circular look. some areas are also semi-transparent.