more than likely zkiller used photoshop. I can't remember if he said so or not. basically it's a layered creation and using various blending techniques to acheive the desired results. Yes, you should be able to use fireworks to acheive similar results.
However, fireworks is limited in a lot of ways... it's not as easy to take away parts of backgrounds to keep only the elements of the photos that you want to use and so forth... photoshop has a set of nifty little tools for these like that whereas in fireworks, it's manual labor and painstakingly slow.
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