Its not too hard without sparks ...however it is kind of linear in its workflow,
the way i do it is
1. put the alpha on the timeline
2. ivert the color with a soft cc
3. add an axis soft effect to the same clip and blur it out
4. then find the "FX" tab and use logic ops and multiply you new clip with your original alpha
5. All thats left to do now is use your bg as the front and your new lightwrap clip as the matte and blend this on top of your original clip.
You can also do this in the modular keyer by doing the blur trick on the back ground, but use an edge node combined with the matte, then use a logic op to just wrap the image then blend that back on the top. Give that a try.
Forgot about the addition of the modular keyer to smoke 2010,
I use smoke advanced with batch at my work, prior to that I was on an old SGI IRIX box running 2007 that
only had DVE, so my thinking prior to having batch was very linear