Feathered Border with PSP 7

 

 

Open your image.  Open a new transparent image of the same size.  Select in the new image.  I used a rounded rectangle, feather 15, antialias unchecked. Save the selection to the alpha channel and leave the transparent image open.

Add a new raster layer to your image.
Open your border image and select it as a texture in the styles box.  Use a seamless tile for texture if possible.  Fill the top layer of your image.  Make sure you have the top layer selected in the layer palette.
Load the previously saved selection from the alpha channel to your image.  Make sure you are still in the top layer. The "marching ants" will show on the image.  Hit the delete key.
That's all there is to it.  If you want to add an inside drop shadow, leave the selection on the image and proceed to the next step.

Here is the image with a drop shadow added all the way around.  You have to do this in two stages:  add the first two sides, close, then add the second two sides.  Make the shadow at least as wide as the feather you applied in the selection.  Done!