so in answer to your questions -
i don't know if this is the normal way to do it in PI; i just reasoned that gradientsmergemosaic could probably blend two datasets together nicely.
for star alignment - you don't need to do anything special, by default SA will create a new image that's as big as the reference image. in this case it will be mostly black with the higher-res image embedded where it belongs relative to the wide-field image.
you can pretty much do anything with pixelmath - i just noticed that when i did the linear fit, the black background of the registered image got shifted to some non-black color. this won't work right with GradientsMergeMosaic, so i knew i had to protect the black area. if you used rangemask most likely the mask would have soft edges or blurred edges and i wanted an exact mask, so i just told pixelmath to make a new image which is white wherever the target image is nonzero.
there are probably some pages out on the web with a lot of pixelmath stuff. you can google "david ault pixelmath" and you'll find some presentations he made. there are also a bunch of formulas floating around that give the same operations as that other program - dodge/burn, hard light, etc. for image combination.
this would all probably work better with linear data - linear fit will probably work better and also GMM was designed to run on linear data so the results will probably be better.
i just had another thought - it might make sense to use the mask to punch a black hole in the widefield image so that when GMM assembles the images that it's not blending the data. maybe it would make sense to reduce the size of the masked area a bit so that GMM has something to blend at the edges. you can most easily modify the mask with clonestamp, i would think.
rob
rob