I don't know why, but I cant reply in the correct post ! There's aproblem with the forum (internal error), so here's my reply.
I appologize for delay in reply. I was out of town this weekend on a project install. I'm back though. 
I'm a bit confused. You want edge blending enabled, yet 0% blend? Do you have the capability of using a camera to snap a photo of the problem? Don't you get a double brightness issue in your configuration where the overlap is with profile 0? A typical setup would use a profile between 8 and 12.
I still not have the projectors, so I just try NTHUSIM in demo mode with 2 LCD screens to be sure everything works well. So, the pics are only printscreen. I want to use blending in my future system so I try it.
But in this printscreen (no warping but blending enabled) we can understand the problem in LFS. With "profile 0" we sould not see this black fading area, this will cause 2 blacks lines in the blending area. There's the same problem if I use different profile than "profile 0", the "fading" is not the same with iRacing (or any other sim/games) than in LFS.
Don't know if you understand, not easy to explain, perhaps you can try it by yourself, the demo of LFS is free (http://www.lfs.net/?page=downloads)
An other problem in LFS completely unrelated to this one is the mouse cursor witch don't match the warp shape even if I check the correct option in NTHUSIM.
The extremity of the edge is -supposed- to be black. If it wasn't, you'd have bright areas in the overlap. When projectors are used, a black "line" is just an area that is not being projected. This will not produce a black line on the screen.
The game where the profile does not properly show the alpha blend gradient to black is a bug with NTHUSIM and needs to be looked into. You can't really properly test NTHUSIM on LCD screens. You need projectors to overlap in order to properly understand what is going on with the edge blending. Black is not a color projected, it's the lack of projection. That area is overlap between the projections and is used to make a seamless transition between the two. If you did not have that, it would be an overlap of the projection which would be double brightness. Neither butting or overlap is preferable to edge blending. Edge blending makes it look like there is no edge between the two projections. It is important in ensuring a uniform seamless visual setup.
I just checked to confirm how the profile blends work and "Profile 0" should be no blend. This might be set wrong on one of the DirectX types for NTHUSIM. Is "Profile 1" showing a blend in all programs for you? In any case, there would be no reason to setup "Profile 0" on a setup unless you were doign a quick check to make sure your blend area had perfect alignment then would shift back to a more functional profile setting.
Ah, I was confused why you were focusing on Profile 0 as the issue. At issue is edge blending isn't working at all with LFS? Alex and Emanuel would need to address that. Apparently one of the DirectX modes is not working right with NTHUSIM.
I got confirmation in email that Alex is looking into it. It should be in the next NTHUSIM patch.


Actually you have it backwards. You should always see a fading blend area. It's what blends the two projectors together. I typically set mine around profile 8 or 9. This is the area where the projectors overlap. In order to make a seamless uninterrupted projection the blend must be enabled.
If you're not seeing a blend in LFS, it means soemthing needs to be fixed for LFS. Alex or Emmanuel would need to troubleshoot this.