It seems to me that a morph would meet the definition of a derivative work: http://en.wikipedia.org/wiki/Derivative_work As such, it seems there would be reasonable grounds for a fair use defense, since a morph is substantially different than the original, and it is a form of artistic expression. That said, from a practical standpoint I would have to agree with 10-4's advice: stick to freely and publicly available sample photos, and retain any identifying information that would help locate the original image.
I believe that is Wendy McMaster: http://www.amg-lite.com/wendy_mcmaster/
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