It looks like a simple blending of layers, and I don't know if Elements does layers. It would be a breeze in Photoshop.
However a morph program would do a much better job. I discovered that Denton County, Texas posts mug-shots of all those arrested. I used Abrosoft FantaMorph
Abrosoft FantaMorph to produce a seamless morph of around 80 of them. Below:
[video=youtube_share;t7UfrCOw7xo]http://youtu.be/t7UfrCOw7xo[/video]
Incidentally, the music was done in-house—as hokey a country arrangement of "I'm In the Jailhouse Now", by early country singer, Jimmie Rodgers as I could manage. Fun to try to simulate a pedal steel from a keyboard. (Me playing.)
I also used it to morph a friend's three offspring into an average kid, and did a print which I left lying on the table. The mother noticed it and I asked who it was. She ran off the names of all three kids and looked up in total panic—she could recognize they were her kid, but she could not tell which one! Very funny!
I have tried a lot of morphing software, but FantaMorph is clearly the slickest that I have tried. The big thing is that it does serial morphing as above. There is a 30 day trial version that can be downloaded.
Warning—it is addictive.