Of course such a black border cannot be transparent.You have to composite the layers together in order to get usable results. In your particular case you only need to take the alpha channel from the mask and put it into the image. I'm sure this can be also done with the composing patches but I don't use them a lot.
I prefer writing an own CoreImage Filter.
I've attached a corrected version.You sohould also be able to achieve the same results with using not more then 10 patches.
Your approach seems to be overdressed. Hope this helps a bit. Cheers, Michael
frame_test2.qtz
Description: application/quartzcomposer
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