1. A method of combining a first digital image and a second digital image into a combined digital image, the method comprising the steps of: a) combining at least one bit of a first pixel associated with the first digital image with at least one second bit of a corresponding second pixel associated with the second digital image to form a corresponding output pixel of the combined digital image; b) distributing a difference value between the first pixel and the output pixel among a plurality of pixels located proximate the first pixel; c) reordering the bit order of the output pixel to form a reordered output pixel; d) distributing a difference value between the second pixel and the reordered output pixel among a plurality of pixels located proximate the second pixel; and e) repeating steps a)-d) for each of the pixels of the first digital image.