2nd one. the psd needs to stand out though...its hard to separate his body from the background.
there's something called OVER-BLENDING. yea, you're supposed to blend it but you need to at least make it visible. he can outline the psd..Correct me if I'm wrong, but isn't that what it's supposed to do? When people don't do that, they say it needs to be blended into the b/g more. I think it's quite the blending job if you ask me.