MorphBuster 2.0 allows you to take one image and then "morph" it to another...
The program is fairly easy to learn, and after a few trips to the help guide you will be morphing your friends into other misc. things. When you have 2 or more pictures together, you then have to mark how the picture will morph into each other. You do that by putting dots on the original picture, and then putting the dot's "twins" where you want it to morph to in the other picture. This means that you can have it morph in any way you want, and have it as simple, or advance as you want!
In conclusion, this is a great program, and it can be a ton of fun. For example, take a picture of your friend, sister, etc. and import that into MorphBuster. Then do an image search on google using a keyword such as "ugly". Once you find a desirable picture, save that and import it into MorphButer. Finally, create all the morph points and export it to an animated gif or Flash file. Have fun :-)
NOTE: When you first run the program it will ask you to put in a registration key. Just click the link to their site to get a free registration key, and don't worry, you don't have to sign up for anything. All you have to do is find the page with the free registration key on it:-)