Creating a Matte and Frame for an Image
Again I am using a photo from the Comstock CD. The picture I am using is shown below:
First we need to enlarge the canvas size by 50 pixels each way. Modify > Canvas size to open the Modify Canvas size dialog box. The original photo is 216 X 325. We will set the new size to 266 X 375 (I just added 50 to each dimension).
You will need three layers. The background layer is the photo, rename Layer 1 by double clicking Layer 1 in the layers palette and name it Matte. Click the new layer icon on the bottom of the layer palette and name it Frame.

Click on the Matte layer and draw out a rectangle by clicking on the rectangle tool
on the tools panel. Draw out a rectangle that fits the canvas. Choose a fill color from the photo and a stroke of black size 12. My rectangle is shown below:
Notice that the photo is not visible because it is under the matte layer. Drag the matte layer under the background layer by holding the left mouse down and dragging the layer under the photo. In fact rearrange your layers in the order below. This will make it easier to see what you are working on:
Select the rectangle in the matte layer, copy it (ctrl C), then select the frame layer and paste it (Ctrl V). This gets you the second rectangle the right size and in the right location.
With the frame layer still selected remove the fill by clicking the no fill options on the paint bucket located on the Properties panel.

Change the width of the stroke to 24
.
Select Inner Bevel from the Filters button
on the Properties Panel. Set the Inner Bevel to the following settings:
Click on the Photo Layer and click the Filters button and apply a Inset Emboss with the following setting:
Here is my final product: