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Well thanks a lot. I may check them out in the future. But as for this case, cutting a section of the original image and imposing another image underneath it is the only way to go? That you know of to create a layer that acts as a separate canvas?

Because clipping mask doesn't seem to fit nicely in this scenario because if you use a clipping mask, I noticed that if you shift the bottom image's position then the other image would also move. Any thoughts on this?