The FlyByNightGraphics Challenge for January is writing a tutorial.  This tutorial will deal with working with selections, inner bevels and psp file formats.  All of the tools you'll need are included in the zip file.  This file contains the image in the center, the heart selection and a lace frame.

Open a new Image 400 x 400 transparent.  Go to Selections/Load from Disk and select the Heart.sel file.   Fill the heart selection with white.   While the marching Ants are still going around the image, go back up to Selections/Modify and contract by 15.  Hit your delete key so that the interior of the heart is gone and you have nothing left but the outer frame.

Deselect and then using your magic wand, Click on the outer frame.   Using a Pattern fill, choose Stain Wood and paint the frame using the paint bucket.   Keeping the marching Ants around the frame, go to Effects/Inner Bevel and use the following settings.

(You'll note that these are the same settings that I've used for my Painter Palette tutorial. Once you have used a bevel, you can do a Save as and use it for many other uses.)

Once you have your rounded edge framing, deselect image.  Open the Lace.psp file and copy and paste as a new layer.  Place the lace right over the frame so that it matches evenly.   Your image should resemble the one below.

Create a new layer and open the image included in the zip folder or another of your liking.  Making sure that the new layer is activated, go to Selection/Load from Disk and open your Heart.sel.   Once you have the marching ants, activate the picture you want in the center, copy and paste into selection.  Move this layer to the bottom.  Pick a complimentary color from the image using the dropper and then activate the Lace Layer.  Go to Selection/Select all and click on the selection tool.  Click on your lace and you will see marching ants surrounding the lace.   Paint fill the lace with the color that you selected.  It should look like this:

Deselect and go to Layers/merge visable.  You can convert this to a tube or a transparent gif as I have done.

Have Fun!