Dang what is it with you people and that Photoshop 7.0 stuff

anyways i know you won't get the full effect but try this
create rounded rectangle for the base. i can be rounded to what you want
then add the picture that you want on a new layer but on top of the rounded rectangle.
now here's the part that i'm not to sure that you can do; right click and select "Create Clipping Mask" this will round out the edges for the document regardless of what layer it is on. if you create a new layer above the others then be sure to repeat the clipping part

I know that Elements is kinda restricted in what you can do but other than that i don't know squat about it
