Filipe. It's time I tell you about the wand tool.
I guess he used slight blur on the edges.
No and no. The wand tool leaves a rough outline unless you up the feathering. However, this still leaves an odd "pixel ring" around the object. Blurring it would only smudge it around.
What he most likely did was either use a vector mask to seamlessly crop the image, or just polylasso'ed that thing.
Both ways are pretty easy since the Blockhead model is made up of flat edges.
