three screen shots describing frame construction:
A. Open new image, sized appropriately for the images being used and size to be printed.
Create new layer and fill with color
Make a ellipse selection and delete color (backspace key)
Make a larger ellipse selection and make New Layer via Copy
Return to the color layer and repeat cut out with rectangle marquee tool for
an overlapping rectangle opening. Note how it now appears as in the middle layer icon.
Then merge the top two layers to make single frame with the overlapping oval border.

B. Open the layer styles for this new combined layer and
apply any of the various styles to the the frame shape and depth.

C. View with two images inserted.

The next image http://www.pbase.com/filer/image/55037169 shows
additional layers in a more refined template and how to add different images.
The layer order of the two images is reversed in order to more easily
change the "portrait" image while retaining the "group" image.
It also shows replacement images inserted in the layer stack.