These are the steps I used to create my Digital Photo Frame from an older Dell 1150 laptop.
EDIT: thanks for the Feature!
Step 1: Software overview/Gut the Lappy
Before I did anything, I planned it out. I knew I wanted a fully-functioning laptop on the wall mainly to be used as a DPF.
The software I used for the slideshow was Slickr, a screensaver that downloads pictures of any specified subject, flickr user, or set of photos on the fly. It works really nicely if you put a shortcut to it in the Startup Folder.
I also use TightVNC to connect to it across the network so I can have total control over it when I need to. I also wanted some control over it without VNC, so I also have the touchpad available, but more on that later.
The first thing I did was to really commit to the project and begin dissecting the laptop to see really what I needed. You'll find lots of extraneous plastic and metal brackets, and knowing what's what will help you decide what you need and what you don't.
Step 2: Take out the Garbage
Here are some pictures of the shell of the laptop that really isn't needed for the final project.
Step 3: Frame and mat it
I was able to find a decent frame from wally world that suited my needs. The laptop's (15 in. diagonal) lcd was approx. 9 in. tall by 11 in. wide. I found a 10x14 in. that worked nicely. It worked especially nicely when I got rid of the maroon-ish inner frame that was a whopping 1/4' thick.
Step 4: Cut the Mat
Cutting a Mat can greatly improve the look of the frame, or, it can make it look like a Diy project (just because it IS one doesn't mean it has to Look like one). I've had some experience in cutting mats and i had access to a decent one in order to cut this one.