That IS a wonderful start! My suggestion would be to perhaps "fade" the edges into the background a little bit. I don't know what program you use, but in PSP when I make a selection I have the option to "feather" the selection by any number of pixels that I specify, and it will "fade" the edges of the selection so if I pasted it on something else the edges wouldn't be so hard.

That probably makes no sense but I'm no good at explaining things