This is an easy and lovely frame effect using PSP7.

Open a new image, white, 16.7 million colors, any size. Here I am using an image 200x200 pixels. Flood-fill your image with the tile provided. Right-click and to save to your PSP images folder

From your frames folder open Photo Edge 05. Activate Layer 2, copy and paste as a new image. Resize the frame according to your own needs, for this tutorial I resized it to 200x200 pixels. Copy and paste it as a new selection to your first image as shown below.

Leave selected and flood-fill with the same tile. While still selected apply Effects-Drop Shadow: v=1, h=-1, opacity=98, blur=4.7, color=#202020, repeat this step using v=-1, h=1. Deselect, Effects-Sharpen, add an image of your choice and you're done.