Simple? In VB6, I used to do this all the time with the loadpicture and paintpicture functions. Perhaps VB2008 has similar functions?
Use a picturebox's keydown event to collect the keypress and update the display at that time.
Use sets of coordinate arrays to track where the boxes are, and if the intersect, make the other form visible with formn.visible=true
That's at least the way folks used to do it waaaaaayyy back then...
I'm a rusty old antique. Ha.