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Adding a picture background to a rectangle shape that has been stretched out to the slide allows for the use of circles to cut holes in the rectangle. Aligning the circle in the center of the slide and using a hidden tool in PowerPoint 2010 to cut a hole through the shape is key for creating the desired effect. Select align Center and align middle in the arrange tab to center the circle, and access the hidden tool by going to the quick access toolbar and selecting more commands. Choose all commands in the menu to customize the quick access toolbar and enable the tool for cutting shapes.