1.  Pick a picture and edit copy       layers   add a layer   

 2. i used the texture  texture grain fine at levels 100    0    1    0    0    315    50    30   

3. cut out with   0  0  81   30

4. made a duplicate of the picture and enlarged it by image resize 120

5. make sure the duplicate is below the main picture for the layer look.

6. then i merged all and reduced the picture by 70.  

 7. Add layer and paste the picture and bring this layer to the bottom  layer. 

8. click off the main picture at the layer pallet

9. go to art media brush strokes at

41    87    5    50    20    10    315    

10.selection  contract 10

11. add new layer and added the cut out  a before

12. then  the effect  inner bevel at  2    10    5    3    -12    0    315    50    30

 13. image add border 2

14. Layers  view all

15. then i added the water mark we made. and that is all : )

16. take it to letter creater and put a background of choice.