Can you please show us screen shots of the images separately, then how it looks when pasted?
Also, what Photoshop version, and what operating system?
I'd say Shadows are the single most important thing when it comes to making a composted element look like it belongs.
Here are a couple of famous Photoshopped 'News' images actually put out by Korean and Chinise government agencies.
This one is incredible. How on earth was it allowed to be put out looking so bad?
When we apply fake shadows, we use information from the rest of the image, i.e. we try to simulate the same lighting. The panda was photographed in very flat lighting - like on a cloudy or overcast day, and there is very little shadow from the bambo leaves on the panda's face. It is also less than clear what the background is, and ho close it is to the panda, so probably all you could do to make the panda belong in the scene, is to make sure the outline is just a tiny bit soft.
The way I do that nowadays, is to Ctrl (Cmd) click the composited element's layer, and add a layer mask. Then I use the Mask Properties panel to edit the mask. Just a tiny bit of feather, and maybe go into Mask Edge to use Shift Edge to increase the mask size a tiny bit. Do this when zoomed in at 100%, actual pixel size.
Thank you again for your help.
I have done that - just feathered it by 2px. I can hardly notice the difference, but I think it's fairly
acceptable. The background is a bamboo fence and the Chinese symbols mean 'Hungry Panda' (it will be a banner image on a Chinese restuarant Web page). The symbols are pixelated upon magnification, but I've tried just about everything!
I haven't got Chinese installed as I don't think Win 7 (Home Premium) comes with that facility.
Thanks again for your advice - I have bookmarked this page for future reference.