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Try using a straight Photoshop file with transparency or PNG.
I personally use as high a resolution as possible and then scale it using scale and aspect to get a smooth mask.
I find with photoshop files that I need to put all colour to black so as to lose the white fringing on masks and drop shadows.
PNG on the other hand has a smooth transition from black to transparent.
I also turn on the black border in Visual FX so I am able to mask outside my created border.
Hope this helps
Cheers
Toby
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