I have a few friends who like to collect Santa painting during this time of year so I decided I would create my own version. This Design could be use for greeting cards or an LCD picture frame if you like.
To begin download the paper file here. Then open it in PhotoShop. Duplicate the background to a new layer and hide it for now. Now download the Frame file here and add it to our document. Once you have it added select your magic wand tool and make a selection of the white portion inside the frame layer. Then go to Select > Modify > Expand and expand the selection 1 pixel. Hit OK. Finally hit the Delete key.
Next download the Santa Image here. Add it to our document under the frame layer. Then scale this layer so it slightly overlaps the opening. I used the smaller box in the frame as a guide.
Now Duplicate the layer and go to Image > Adjustments > De-saturate. Now go to Filter > Other > Hi-Pass and set the radius to 37 and hit OK. Finally set the layer to linear light and the fill to 30%.
Now unhide the second paper layer and move it above the current layers except the frame layer. Set the layer fill to 60% and set the layer blend to Hue.
Now using your best judgment add 3 45° angle white bars of various widths. These will serve as our glass reflection. Once you have them the way you like go to Filter > Blur > Gaussian Blur and set the radius to 30.0 and hit OK. Finally set the layer fill to 30%.
Duplicate the frame layer and hide it for now. Then go to the active picture frame layer and add a drop shadow. Set the drop shadow distance to 0 and the size to 34.
Lastly unhide the copied frame layer and go to Filter > Other > High Pass. Set the Radius again to 37 and hit OK. Then set the layer to Saturation and you are done.