This is a pretty simple application where the user should be able to choose between a set of pictures bundled with the application or from the camera roll.
The chosen picture should then be used as a overlay on the camera view. The user should be able to place a shape on the chosen picture that will make that part transparent.
See this video, 16 seconds into the clip, to see what effect i want to achieve: [url removed, login to view]
It should be possible to save the picture/movie clip.