In Photoshop CS6, the new version of Photoshop, you can use special cropping tool and you are done, but that doesn't mean you cannot achieve the same result with older versions.
In this simple Photoshop tutorial we will create an image that will look like there is a photo inside of a photo and add some radial blur for the more dynamic effect.
If you don't want others to use your photos and images without your permission, you can create a so called custom watermark with your name or any other text you want.