Oh this is an easy one.
First fix your  photo in what ever program you have it in.  Fade it, do whatever.
Then save. (Might need to save in some generic format, jpg or something.)

In Freehand, go to file open and open the thing.  
Select all
Copy and close it.

Go to your document and paste.

now... if you want it as a circle, and you got a square box, make a mask.

Create your circle, give it a fill of nothing.  make a big box to hide parts of the image you don't want to see.
Give the box a stroke of nothing, and same color fill as the rest of your page.  Either white or what ever.  

Select both your circle and box, (hold down the shift key to select more than one thing) and go to modify/join.  Viola.  You now have a mask with the hole as your opening for your image.  Be sure the image is below the hole.

hope this helps.  Now I need to find a fix to my problem here.

Fine and graphic artist for hire.
Visit my Worlds
http://ArtmakersWorlds.com
http://cafepress.com/ArtmakersWorlds