Surface.blit has a new parameter in 1.8: blend. The following values are defined:
BLEND_ADD
BLEND_SUB
BLEND_M
Those are blending modes for compositing images on top of each other. The name of the blending mode already tells you the underlying operation.
The BLEND_*
constants are simply aliases for the BLEND_RGB_*
constants and the BLEND_RGBA_*
variants operate on all four channels (including the alpha channel) as opposed to only RGB.
For general information about the different blending modes and their respective effects, see here.