This is a simple tutorial walking you through how to create
layers and modify them. I'm using Photoshop 7 but you can
apply this knowledge to any editing program.
Click on the photo's for larger images,
easier to read.

This is our starting point. I have just opened up my image.

Now we need to create a second layer. I am going to add
a simple border.

To re-name your layer, just double click on the name "layer
1" in this case, and type in the name you want. Make
sure you have the new layer selected or else you won't be
able to modify it. You can tell I have it selected because
it is a darker shade of grey. Also, make sure you see the
eye beside the layer. That means it's turned on.

I have re-named my second layer " layer2 border".
I choose the rectangle tool, made a box a litle smaller
than my image, went to 'select' - select inverse- choose
the paint bucket tool and filled in the border area with
black.

Notice if I turn the eye off by clicking on it, you can
no longer see that layer, or in this case, the black border.
If I saved the image like this, no-one would see the black
border.

So now I want to combine two images. I want to move this
shamrock into my bear photo.Choose the 'move' tool, click
on the shamrock, or other image you want to move and drag
it into the image and move it until it's where you want.
Doing this automatically creates a new layer for us.

Now we want to add effects to a layer. I'm going to choose
the border layer "layer2 border"

Click on the 'f' button for layer effect options

We are gonig to use the 'stroke' effect. This creates a
line around your layer.

One you choose 'stroke' this screen will pop up and you
can modify the details. You can change the size, color and
lots of other options. Feel free to play around with the
layer effects. They can really make a big difference.
Here is the finished picture. Yes, it's VERY basic, but
I hope it helps you get the idea so you can start playing
around on your own. I have changed the 'stroke' color to
blue.

Tips
- If you are creating a collage make sure for each image
you move onto your master image, create a new layer for
it. This way, when you want to move each image separatly
you will be able to do so. I can't tell you how many times
I've put several images onto 1 layer so that when I go to
move them around, they all move at the same time.
- Don't be scared to play around with layer effects.
- there are MANY ways to cut out an image. So for example
if you wanted to cut out a bear from it's background so
you only have to move the bear onto a new image here is
a good tutorial. There are many others on-line as well.
http://www.pegaweb.com/tutorials/separation/separate-image-from-background.htm
- Send me an email if you have any questions. I want to
help bear makers create avatars, banners and webpages, so
you're help will only make this tutorial better.