1. Open a new image that is 250 X 350 pixels, with a transparent background.

2. Using your selection tool (set to rectangle)....

Hold your LEFT mouse button down, and make an outline of a rectangle in your new image.

3. Go to "Selections", then click on "Invert". You should see the following image:

4. Now it's time to make the frame. First we want to fill the frame with a color. So choose any color or pattern you want to. Here I chose a Navy Blue.

5. Using your Flood Fill tool (it looks ilke a paint can):

LEFT CLICK and fill in the space between the two sets of 'marching ants'

6. DEselect by holding down the Ctrl and D key together.

7. Now we have to save the frame. To do so, there are several options available. You can..
-Save it as a .png file by selecting:
File>Export>PNG Optimizer>Click 'OK' (The 'wizard window' will pop up, but there is no need to make any changes or adjustments. So just click 'OK' when this pops up).... type in a name for your frame, and then click 'Save'.

-Save it as a Picture Tube by selecting:
File>Export>Picture Tube...type in a name for your image, then click 'OK'

-Save it as a frame (This instruction is for PSP X users only) by selecting:
File>Export>Picture Frame...type in a name... click 'Save'.

You can now use your frame as you would any other frame. Here is my results! :)