This technique of image in the image is very attractive in photo albums.
And not too complicated to implement (even the curl corner is easy if you follow the explanation).
Here are the before image and the final result as you get to the end of this step by step tutorial...
The sample was processed with PHOTOSHOP CS3 ... using its standard features ... It should be easy to implement it in Photofiltre or Paint Shop Pro if these apps are your favorite programs.

(Click to enlarge)
How to proceed
So choose a picture ... If you prefer to work with that above, you can DOWNLOAD HERE...
Go, it starts!
Open your image in Photoshop and begin with Duplicate Layer This picture (Layer> Duplicate Layer)...
Call this new layer Color.
Select the first layer and move it in black and white (Image> Adjustments> Desaturation).
Darken your photo Image> Adjustments> Brightness Contrast significantly lowering the brightness Then duplicate this layer and call this new copy FondNB.
Here is the layer pannel now:

Select your layer Color and, using the rectangular selection tool, Select the portion of the image to highlight ... In anticipation of the outline framework, select a little larger than necessary.
You will now tilt slightly this selection by using Selection>Modify >Transform selection. Don't forget to validate when all is OK.
Use now Select> Invert Selection then press delete to remove in the layer Color everything outside your selection. Finish by applying again Select> Invert Selection.
Here is a view of the image as it stands now:

To better reflect the color part, you are going to add some blending options clicking fx at the bottom of the Layers palette.
1) By first clicking drop shadow... and adjusting the shadow as if the light came from above the right (to facilitate after the lighting the curly corner).

2) then clicking stroke. You set the Size (depending on the image), the Position to Interior and Color where I chose a very light gray ...

Your image starts to appear !

If you do not want to a curly corner ... it's over ... Otherwise start by merge Layers Color and FondNB and save your pic.
For more precision, enlarge, with the Zoom tool the upper right corner and, with the tool Polygonal Lasso Tool select a small triangle in the top right of your color image (just click on the 3 vertices of the triangle).
Go now Edit> Transform> Warp. A grid appears around the selection triangle. Click down and hold the upper right point and pull down by the left ... to return a small triangle ... as in the photo.

Clear (Select> Deselect)...
You will now select the little curly tip corner ... It is best to use the Pen tool (It's time to learn it!) which allows you to draw precise curves ... otherwise use thePolygonal lasso tool. Give a Zoom... and select the litle triangle...

Start by painting it with pure white ... then invert the selection (Select> Invert Selection).
You have to paint some shade beneath the corner to complete the illusion of 3D.
To do this, choose the color BLACK and adjust the brush tool to Opacity 20% and 20% for Flow... Shade in the curly corner by light touches ... you can always go back by Alt + Ctrl + z...

When you're satisfied, merge the 2 layers and crop ... your image in the image is finished, ready to be incorporated into one of your Scrapbooking pages!

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