Abstract: An image capture and compositing apparatus for a photobooth (10) photographs a customer against a fixed color background (28), extracts the customer from that image and then inserts the extracted customer image into an arbitrary background image in such a manner that there are no noticeable artifacts between the inserted image and the background image and so that it appears that the subject was actually situated in the background scene when photographed. The imagery processing mechanism employed generates a pair of masks, one of which is associated with the foreground image and the other of which is associated with the background image. These masks are used to extract the subject (160) from an image of the subject against a reference color backdrop, to define what portion of the background image is to be blanked out and to controllably blend the border of the inserted subject image with the background image.