I have two pictures that I want to merge into one. They are not group shoots, but of single individuals. I tried the panorama option, but got an error message that the pictures did not align.
davea14,
Here is what I suggest for your purpose:
1. Go to File>new>blank file. Enter the dimensions. If you intend to print and your paper stock is 4x6", enter these values. Enter "Background Contents" in the dialog as well. Resolution 240 px/in. This will be your canvas.
2.Open picture A. Using the lasso tool, magnetic lasso tool, or selection brush, select the single person. Once the selection is complete, go to Edit>copy to place it on the clipboard.
3. Go back to the canvas from step #1, then Edit>paste
4. Do the same for picture B. At this point you should have 3 layers. Background layer and layers 1
&2.
Activate the move tool and position A & B, and resize if necessary using the corner handles of the bounding box. Make sure that you are on the correct layer.
This process isolates each person and places both on a new background. If the lighting on A & B is different, you can adjust via the Enhance menu>adjust lighting