Hi Jim
If I have understood you correctly, you can get the effect you are looking for by doing this:
Open a new file slightly larger than your picture. For example, if your picture is 400 x 400 pixels then open a new file 600 x 600 pixels. Copy and paste your picture as a new layer onto this. Go to selection tools and choose the rectangle and change feather to 20. Select a small amount of the side of the picture you want to fade and press delete on your keyboard two or maybe three times to get the desired effect. Deselect (ctrl + d). Highlight raster layer 1 and go to layers then new raster layer. On this layer fill with white paint. You can then cut the image to size, flatten your layers and save.
One great resource I found and have used often is the Paint Shop Pro Users Group. It's free to join and you get loads of tutorials that you can try out.
Anyway, hope this helps.
Bayou 
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