AlphaBlend Windows API Function - Delphi Help

Hello, I want to draw a transparent bitmap in my delphi project. The project is attached. I want to use AlphaBlend function to draw the image on another TImage object or the form itself. The basic purpose is to draw the bitmap over the form so that it blends with the form background color and does not leaves the border corners and have smooth effect. The bitmap present in the project is 32-bit BMP and has alpha-channel available for each pixel. So AlphaBlend API function should do the job but my code is not working. If you are expert in Windows API and Delphi then come back with a demo. You can use the attached project for the demo. Also let me know the price to make it work.