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Sorry if "blending" is not the correct term, that's how the option was described on a tutorial I read.

On the layer window, there's a drop down with some options next to the Opacity setting. You can select from Normal, Dissolve, Darken, Multiply, etc. "Color" is an option near the bottom.

I'm trying to design an image for a friend for an electronic cigarette vendor.

I followed a tutorial to get this smoke effect:

[ATTACH]51271[/ATTACH]

It looks really good against a black background. As you can see, that drop down menu is set to "Color" to get that effect.

When I followed your steps, it doesn't look as nice. Here's the image:

[ATTACH]51272[/ATTACH]

When I did the clipping mask, if "Color" is selected the brush (the smoke) remains white with no gradient. I have to use "Normal" which doesn't look as nice as when it's set to "Color" (above). It's just applying the gradient over the brush without the nice smokey effect I get in the above image.