I adore these pencils ... I bought them from Pottery Barn during my visit to Chicago in May 2007. I love the little quotes and used these as the basis for my journaling.
For the photo blending, I used TaylorMade Designs, Casually Blending In papers (which, BTW are fabulous!) and set the blending modes like this:

layer1 - PP2, blend mode "normal", opacity 100%
+
layer2 - Photo, blend mode "colour burn", opacity 100%
+
layer3 - PP6, blend mode "hard light", opacity 50%

Credits:
Papers - TaylorMade Designs, Casually Blending In
Frame / grid - Sue Cummings, Inspired Overlay Grids
WA - Sue Cummings, From My Notebook - Perfect Mattes No.1 & From My Notebook - 52 Inspirations 2009 Bonus No.2