A lot of people ask how to get new characters from scratch - here you can learn how to do this:
For the easiest example open up two characters who are similar in stances. Good examples could be Bandit and Jack. Now choose a part you want to "fuse", so in this case I'll take jacks head and I'll put it on bandits body.
First backup both files, next open the Jack-File and change the background to a lighter colour so you can see the body better. Use the magnify tool and zoom in X8, you'll instantly zoom into the first standing picture of jack. Now choose the eraser tool and carefully erase the upper torso part of jack, but leave the head intact.
Now open the Bandit-file. Zoom in the first picture and delete most parts of the head, just leave like two pixels of skin at the neck. As next step, make the backgrounds of both pictures white.
Open up a new Bitmap-File and paste Bandits Body in there. Now copy jacks head, zoom in Bandits body, paste the head and select the option you see at the right. The colour you draw with if you use the right mouse-button will get transparent then - in this case it's white.
Carefully set the head at the position you want. Congratulation, if you did everything carefully you did your first Rip-Edit!
If you edit the other pictures you can luckily use heads of pictures you edited before, as example: You can use the head of the first standing frame for all standing- and walking-frames. Finally when you are done with replaying all head-files you can also edit the character with filters like I described in my first tutorial (Colour Change with Photo Shop)