generally speaking, on this sort of job, cloning is not the way to go; not on the main image you're trying to import into another. normally, the way to go is as if you were working on paper. you cut out one picture and add it behind another. you said this was just going to be a head and shoulder shot, the one you're adding, so i assume this is going behind the other people on the main image.
so, you cut out the image you're going to add and make it a completely separate image with a transparent background. you want to make sure it's a transparent background because you're going to add this behind the other folks on the main image and dont want any background on the cutout showing up.
once you have your cutout, you make a new blank layer on the main image. next, copy your image into the clipboard with 'copy'. on that blank layer you simply paste your cutout onto it, move it to where it needs to be and paste it down. because this layer is on top of your other layers it shld show completely, and quite possibly be blocking image data from the main image, at least in part.
with your eraser simply erase those parts from the cutout that are blocking the parts of the main and that's mainly it. you can use a bit of a blurring tool or light smudge/push or something of that order to make the blend lines a bit smoother and more natural now.
the tricky part is now making the cutout match with the main image in shadow/light, saturation and color balance. for this you may want to group your next layers so that it only affects your cutout layer.
add a color balance adjustment layer to your cutout layer group. since there is no example image posted here, you're going to have to work that out for yourself as to how you adjust this. it may not even need it... if you're lucky.
you might also want to saturate or desaturate the cutout to match the main image. i normally use the Fast Fix plugin to do this.
lighting is the harder one. if the light source of the cutout and of the main image are from different angles and directions, you've got your work cut out for you. you're going to have to change the entire shading on either the cutout or the main. normally, it's easier to change the cutout. i think first i'd try a global fix on the cutout layer with whatever the equivalent tool is in ps. in psp it's 'illumination' found in the 'effects' menu. just change the lighting as best you can keeping the relative strengths the same as the main image.
you can also use curves or levels on the cutout to help out here as well. or, you could use psp's lighten/darken tool for tricky areas or more detail work. you might also want to try another grouped adjustment layer of contrast/lighten.
it's a bit difficult to advise any given thing here without seeing the various images involved, but those are the tools to work with and one general method of getting what you want.
good luck, and if you can post those images, we could most likely direct you a bit better.
What others said about masking and placing rather than cloning.
If you are using Photoshop CS you can try the Color matching option under Image->adjust-match color.
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