This works in Photoshop Elements and Photoshop
We are continuing with our “Wanted Poster” as an example, but this method has endless possibilities.
Step One: 
Make a blank Layer. In the layers palette use the “Create a new layer button”
Step Two:
Make the blank layer active by clicking on it making it “blue”, and turn on the ruler Menu: View > Ruler.
Step Three:
Select the rectangular marque tool, Keyboard “m” In PSE pressing the “m” key cycles through the different marque selection tools, in Photoshop you press Shift + m to cycle to the correct selection tool. Draw a selection 1/2inch or so from the edge of the image.
Step Four:
Invert the selection Menu: Select > Inverse
Shift Command I (It’s the letter i Mac)
Shift Control I (PC)
Step Five:
For a Black Border make the foreground color black. Choose the Paint Bucket Tool Letter “k” Fill the inverted selection with black (or White depending on what border you want.)
Step Six:
Deselect the “border” Menu: Select > Deselect
Blur the border Menu Filter: Blur > Gaussian Blur… use a large value.
Step seven:
Paint with a “holey” or a rough brush. and/or Use the Erase brush with “holey” or Rough Brush!
This is where you can be “artistic”. What kind of Brush? In Photoshop Elements choose a brush like Pen Pressure #91 or in Photoshop #39 (Dry Brush #11)
Results…
A Photoshop only variation:
After Step Three
Step Four
Photoshop only (Press the “q” key) to create a quick mask.
Step 5
Menu: Filter > Filter Gallery…
The edges you can generate here won’t be as dramatic as the above “paint” in/erase method. Try Filters Like Sprayed edges, Cut out, etc…
When you get the effect you like press okay
Step 6
Press the “q” key to return to ‘Normal’.
Press Shift Command i (Mac)
Shift Control i (pc)
Choose white for your foreground color
Press Delete (Mac)
Backspace (PC) and select “Foreground” Click OKAY
Enjoy!!!
A note about Photoshop Elements
Elements has a bunch of built in ways for making frames and edging your images (easier than Photoshop)
Here is an example http://www.alibony.com/pse/012208frame.html
Okay, now have fun!
Have Fun!
