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Fitting One Image Into the Other

We now need to insert one of the TV images into the display area of the TV on the other layer. We have two identical layers, we will be manipulating the upper layer to fit it into the TV on the lower layer. We will be resizing and trying to fit one image into the other, this will be very confusing for us visually. We will need to see the lines of the display area of the lower TV through the image we will be manipulating - we can achieve this by making the TV on the upper layer (the one we are manipulating) transparent. But this approach will confuse us because the two images are identical and too visually cluttered. (If this is not making sense, don't worry) To solve this problem we need to temporarily fill the upper layer with a solid colour, as well as make it transparent. Go to the Layers window double click "Layer 1" until a "Layer Style" window pops up. This window can be used to apply very interesting effects to layers, but we are interested only in the "Color Overlay" effect. From the list of effects on the left, find and check off "Color Overlay". Pick a colour to fill your upper layer with, I chose red. Click OK. The below picture shows you part of the "Layer Styles" window and the option you need to choose.
Now that the upper layer is filled with a colour, we need to make it transparent so that we will see the image underneath. Remember that these effects are temporary, and we will undo them later. Set opacity on layer 1 (top layer) to about 60%, the opacity can be set using a slide at the top of the "Layers" window. Below is a picture of that window, showing the effect being applied to Layer 1, the opacity being changed and, at the left, the bottom image showing through our red layer.
Now, we need to transform the red layer and fit it exactly into the display area of the TV that is underneath. Go to EDIT->FREE TRANSFORM while Layer 1 is selected. ALT-CLICK on one of the corners of the red square, drag it to the closest corner of the TV's display area. This is what it should look like:
Keep ALT-CLICKing and dragging the other corners of the red layer over the corners of the TV screen.
You are done when all four corners of the red layer are lying on top of the four corners of the TV screen. Well done.
Remember that every single action that you have made has been recorded by Photoshop so far. You will not have to do this process over for every consecutive TV that you would like to insert into the screen. Because filling the upper layer with red, and making it transparent was only temporary, we need to reverse these effects. Go to the Layers window, under Layer 1 there will be a tab with effects that have been applied to it, untick the "Effects" checkbox (next to the eye icon) and make the opacity 100%. Below is what your Layers window should look like. You now have one TV within the other.
We're almost done. To make repeating this process easy, we need to combine the two layers into one, merge them. Go to LAYER->MERGE VISIBLE.
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