To Deform / Warp an image, select the deform button from the toolbar. Press the mouse at the location in the image fron where you want the image portion to be deformed. Then drag the mouse to the location upto where the image is to be deformed. You can give someone a big cheesy smile by dragging the corners of their mouth, etc. You can be use it to turn portraits into grotesque caricatures. You can make the nose melt or the eyes bulge by clicking and dragging the mouse.