Step 1: Shoot Frame
Step 2: Create New File
Open the properties window of your photo. (Right click on photo-Properties-Details tab)
Match the length, width, and DPI(resolution) of your photo to the new Photoshop file.
Place your photo into this file. (File-Place...-Select File-Commit)
Step 3: Adjust Levels(optional)
I increased the Brightness to 85 and the Contrast to 35 .
Step 4: Remove Inner Frame
Step 5: Duplicate Layer
In the Layers window, drag the copy layer below the original layer.
Resize and rotate the copy layer to fit within the original picture frame. Use the copy layer's handles to manipulate it.
Commit the new layer position.
Step 6: Duplicate All Layers
Drag these copied layers to the bottom of the layer stack. (This puts them underneath all other layers.)
Resize these layers to fit in the previous frame.
Step 7: Repeat
Step 8: Export
Export the entire image as a JPEG, PNG, or any other desired file. (File-Save As...-Save-Maximum Quality-OK)
This instructable is also archived on my blog .
If you try out this technique, be sure to post your image in the comments!