There's this facility: http://gmaps-samples.googlecode.com/svn/trunk/groundoverlay/groundoverlay sizer.html
Put your image on the web. Use the first box on that page to centre the map on your town. Paste the URL of your image into the second box on that page and click [Add/Update]. Drag the corners until the image matches the map. When you're happy, copy the code from the code box at the bottom.
Actually, to make it easier to see what you're doing, you might want to grab a copy of that page and make the map a bit larger. Also, you might want to make a temporary copy of your image as a 50% transparent PNG file, so that you can see through the image to the matching map features below.
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