1. A method for taking a digital picture of an image, the method comprising the steps of: recording a first plurality of pixel values representing the image; recording a second plurality of pixel values representing the image; and processing the first and second plurality of pixel values in a compressed domain to generate a third plurality of pixel values by: determining a center image boundary in response to the first and second plurality of pixel values, and generating the third plurality of pixel values in the compressed domain in response to the first plurality of pixel values, the second plurality of pixel values and the center image boundary, wherein the step of generating the third plurality of pixel values comprises the steps of: replacing ones of the second pixel values within the center image boundary with ones of the first pixel values within the center image boundary, and defining a smooth transition boundary in the compressed domain which includes the center image boundary.