I just happen to have a copy of version 2.
This should get you started.
Open the photo you want to apply the frame to.
At the top click on Window and make sure a check mark is by, Tools, Layers and undo History.
These are your pallettes I will refer to in the following.
Click on Image>Resize>Canvas size.
This will open a dialogue box. Set as follows:
Make sure the Relative box is checked and you are working with inches not pixels.
Now, Depending on how large or small your photo is, you will type in the width and height measurements.
Start with 1" in both.
Now click OK.
This will give you a white border around your photo.
If it is too big or too small, just click the undo button and adjust your measurements accordingly.
No click on the magic wand tool( It is the second one down on the right, in the tool pallette.
At the top, set the tolerance to "0"
Now, click in the white area that you just made.
You will see what is reffered to as marching ants around the white area.
Now, Go to the top and Click on Layer>New>Layer via Cut.
This made a new layer of the white above the Photo layer.
Now you are ready to get creative.
In your tool pallette, you will see two over lapping boxes at the bottom, click on the top one.
This will allow you to choose the color of your frame using the color picker box that opens.
Pick your color and hit OK.
Once you have picked your color, Get the paint bucket from the tool pallette(it's the 5th one down on the left.
Now click in the white area of your photo that you made.
Now you can go to the top and click on Layer styles and choose a style.
Start experimenting by choosing bevels from the little drop down arrow and choose Simple emboss.
You now have a pretty decent little frame.
You MUST flatten the image before saving to be able to save it as a jpeg.
In the layers pallette, click on the word "more" and click on flatten image.
Always remember that if you do something wrong or don't like the effect just click the undo button.
Thanks DRB. I started out with PSE4, so I'm not even sure how much I could have helped. With the upgrade to PSE6, I was almost starting over on frames, the two versions were that much different. I've added a tutorial here for PSE 6 which may help folks with more recent versions. It will almost help with 4 by at least showing where to look for things, but the steps would be different. Not sure how 5 fits.