Thanks all, appreciate your help.
It turned out that the reason for my difficulty was my mistake when arranging my target, mask and white background
within my video editor. Not helped by Magix MEP's rather unconventional layer structure, which places the 'top' layer at the bottom...
@Kathy_9: MEP allows quick toggling between 'white = transparent' and 'black = transparent'. In this instance I initially chose a black interior because of the required white background.
But I'm a relative novice at PSP 8 mask-making anyway (having relied mainly on those built-in) so this is a very useful learning exercise.
I especially liked MarkZ's method. Although it was plainly not the fastest approach, it gave me the most control. And it was the first time I've used New Mask Layer!
@MarkZ: I guess more experienced users regard it as obvious, but in my notes for future reference I've added this additional step under 'To use this mask:':
1. Open the target image and Promote Background layer.
One puzzling point arose when I used the Modify Selection Expand/Contract commands. At first I contracted by 40, but then decided 20 would be better. So I expanded by 20 to achieve that. I was surprised to find that gave
rounded corners instead of sharp ones.