Merge down all the layers now: Layer ? Merge Visible (shift+ctrl+e).



Using the Crop Tool and the Rectangular Tool, it's possible to insert the picture in a frame (place it on a new layer).



Select a set of ready to use brushes (downloaded on: http://www.deviantart.com/deviation/33101426/ ?qo=15&q=by%3Aanarasha-stock&qh=sort%3Atime+-in%3Ascraps) and insert several ornaments, by applying this combination: Edit ? Transform ? Flip Vertical.



Make a copy of the layer containing the frame and the ornaments and blur out a little the copy: