Lazarus The 2nd, those instructions seem a bit flawed to me. Ctrl + V doesn't paste as a floating layer and some of the other instructions don't work either.
I'm using PaintShopPro (so some of the terms are slightly different). I roughly lasso the outline of object/people and copy then paste as new image (on a transparent background). Then tidy up edges of object by deleting/rubbing out the bits I don't want. Then copy it and paste as a transparent selection layer onto the background pic. I can grab it and move into the position I want to sit it on the background pic.