Pasting in "Invisible Mode" (MS Paint)

[agoodfella]

For those familiar with MS Paint, there are two modes of pasting:

1) A normal cut and paste where everything you cut is pasted 100%

2) The "invisible" mode (is the best way to describe it) where the "clear" portion of what you are pasting doesn't overlap over the underlying picture.

I've attached a photo of this mode in MS Paint (red circle):
http://img394.imageshack.us/img394/8523/mspaintwi5.jpg

My question is simply, is there a similar function in PS3?

Thanks

[Edited on 10/10/2007 by agoodfella]

[mkeefe]

Photoshop has this when you work on multiple layers. It only copies the
object, not the entire layer.

Matt

[agoodfella]

Thanks for the reply.

Do I have to select layers? How do I do this?

[mkeefe]

ctrl+A will select all the contents on the active layer