An interactive photo kiosk in which, in one embodiment thereof, presents an upright open face which enables a user to stand directly in front of the kiosk, which optically defocuses the background image and substitutes a selected computer generated image, and which enables the user to pose and freeze a selected image made visible to the user on a display screen. Users may choose from among a menu of different computer generated background images. In a preferred embodiment, the selected frozen image is in digital form and is processed electronically to form a single digital multiple image of the same image in a selected area format which, when delivered to a printing apparatus for hard copy print-out, produces a multiple image of the same frozen image on a single sheet wherein each of the multiple images can be peeled off the single sheet and used separately from each other. An interactive image adjusting feature is provided to allow a user to modify the size and orientation of the user's image within the composite image. The composite image is formed by providing a uniform colored backdrop behind the user, imaging the user with the backdrop, and electronically replacing the backdrop color with the selected background image.