I'm using Paint Shop Pro 5 but the same steps can be used with PSP4. You can download a trial version of PSP from Jasc.

STEP 1:

First choose the image you want to create the border from. Select the best area of the image in the shape of a rectangle.

STEP 2:

Crop and resize the image until you have rectangle the same size you want the border to be. In the menu its Image - Crop to selection... or Image - Resize...

STEP 3:

Decide on a background colour that looks good with the image. Next you need to increase the canvas size.

Make sure the "Center Image Horizontally" is not selected and the vertical is checked with Left set at 0. Keep the same height but make the width 1024 pixles. This size works well with most screen settings.

Now you have a basic border background!!

Reselect the image area like this:

Adding a Shadow

Choose Image - Effects - Drop Shadow. Vertical should be set to 0. Play around with the rest until you get the look you want.

Buttonizing

Select Image - Effects - Buttonize. Set the height and width to 10, opacity to 100 and check the transparent edge.

GOOD LUCK!!