Supplies Needed

Paint Shop Pro
Fantastic Machines - Paint Engine
Ulead Art Texture
Filter Factory A
Zip - Here
File contains the graphic and the VM Distortion - Radial Pox .
Unzip the file and open the graphic in PSP.
Place the  VM Distortion Filter in your PSP Plugins Folder. 
Corners Optional

1. Open graphic and duplicate twice (Shift, D).
Minimize one and we will use it later for the pattern.

2. Chose a colour from your graphic and set it as your foreground color - I used #3F6A7B.
Background set to white.

3.  Add 2px border. Select with magic wand.

4.  Effects - Plugins - Ulead Art Texture.
Edit and chose palette 5. Ok.
On the main screen scroll to pattern template #9 and chose the first pattern, second row. 
Keep selected

5.  Selections - Invert. Effects 3D Effects - Cutout. 
Apply cutout again V & H -2.
 Deselect.

6. Add 10px border.
Select with magic wand.
Flood fill with foreground color.
 Keep selected.

7.  Effects - Plugins - Filter Factory A - Pool Shadow.
Apply the  following settings.
My screenshot will appear different as I am using Filters Unlimited. 
 Deselect.

8. Repeat Steps 3 & 4.
In this repeat, chose a different color from white as your background for the border
 as the magic wand will pick up some of the white from the previous border.
I used my foreground colour.
To apply the Ulead you don't need to use white for the border colour.

9.  Add 15px border.
Select with magic wand.
Flood fill with foreground colour.

10. Effects - Plugins - Fantastic Machines - Paint Engine.
Use the following settings. 
 Keep selected.

11. Effects - 3D Effects - Cutout.  Deselect

12. Repeat Steps 3 & 4.

13. Add 20px border.
 Select with magic wand.

14. Select pattern and scroll to the image we minimized earlier.
Flood fill the border with your pattern. 
Keep selected.

15. Effects - Plugins - VM Distortion - Radial Pox using the default settings. 
Deselect.

16. Repeat Steps 3 & 4.

17. Add 25px border.
  Select with magic wand.

18. Change your style back to colour and flood fill the border with the foreground colour. 
 Effects - Plugins - Filter Factory A - Pool Shadow using the same settings as before. 
Keep selected.

19. Effects - Noise - Add   10% Uniform.
  Keep selected.

20. Effects - 3D Effects - Inner Bevel.

21.  Deselect.

Thank you for trying this tutorial
I hope you have enjoyed it.
If you have any questions or queries
please feel free to email me.