Promoted it to a new layer...then on the promoted layer I used the deform tool to make it smaller. Selected that layer and added a cutout. Went back to the original layer and did a seamless tile. Then added the birds (after selecting them) and added them to the promoted layer. Added a brush stroke to the birds and to the flower image.

Then I added the black border and the gold filigree after merging the layers. There you have the finished product.