Code:

// Create the JPEG
TJPEGImage *JPEGImg = new TJPEGImage;            

// Load from resource to stream
TResourceStream *Stream = new TResourceStream((int) HInstance, "IMGJPEG", "JPEG");

// Load JPEG from stream
JPEGImg->LoadFromStream(Stream);                

// Create target Bitmap
Graphics::TBitmap *BMPImg = new Graphics::TBitmap;    

// Load Bitmap from JPEG
BMPImg->Assign(JPEGImg); 

// Create target mask
Graphics::TBitmap *Mask = new Graphics::TBitmap;        

// Load target mask
Mask->Handle = LoadBitmap(HInstance, "IMGMASK");    

// Set Copy Mode
BMPImg->Canvas->CopyMode = cmSrcPaint;

// Draw the Mask    
BMPImg->Canvas->Draw(0,0,Mask);