Open a background paper, your photo, and a frame into PhotoShop Elements.

Click onto your background paper to make that document active. Then slide the photo and then the frame onto the paper. 

In the layers palette, the frame should be on top and the paper on the bottom as shown here. If you need to rearrange the layers, you can click and slide the layers up and down in the layers palette shown here on the right.

Move the photo and frame into place by clicking on each of them and sliding them around. If you need to resize either of them, only do so by pulling in a corner. (hint – If you hold down the alt key while pulling in a corner, the piece will get smaller while staying in the same place.) After changing the size of a photo or element, you’ll need to click on the check mark to make the program accept the change. Position the 3 layers where you’d like them by clicking on them and sliding them around.

Make the photo layer active by clicking on it. In the tools palette on your left, choose the eraser tool. At the top of your screen, make sure the eraser is set to the first of the 3 erasers and one of the top default brushes so you can erase a smooth line. You can change the size of the brush in the next box to the right. The mode should be brush, and the opacity 100%. You can now brush the eraser over the section of the photo that you do not want to show inside the frame. Be careful not to erase too closely to the inside edge of the frame. At any time, control-z will back up and control-y will go forward. PSE defaults to 50 steps forward and backward, so if you erase too much, just back up with control-z and begin to erase again. Your photo should not show outside your frame.

Click on the frame layer to make it active. In the artwork and effects palette, change the left special effects drop-down menu to layer styles and then the right drop-down menu to drop shadows. Double click on the low drop shadow. A shadow should now show on the frame layer. (Remember if you make a mistake, just do a control-z, make sure the correct layer is showing blue or gray in the layer’s palette, and add the shadow.

IMPORTANT – PhotoShop Elements defaults to a really heavy shadow. Bring the shadow down by double clicking on the little layer style button that is now showing on your frame layer. The Style Settings box will open. The default settings are 21, 21, and 75. Bring the size and distance down until the frame appears to be placed on the photo, not floating above it. My frame in this example is set to size 9, distance 12, opacity 75 and the lighting angle at the top in the style setting box is 120 degrees. Click OK when you’re happy with your frame shadow.

Add journaling and other elements to your layout, moving them around and adding shadows for realism. Remember to open the style settings box after adding shadows to tone them down where necessary. Your layout will look better with slight shadows rather than heavy ones.