This can be done in either PSP7 or PSP8.

Materials needed:

An image of your choice
A corner

1. FILTERS NEEDED:
   DSB Flux;
   VM Toolbox;
   Simple filters.
   You can download it here

Additional information:

Tiler is one of the  VM Toolbox filters.
If you don't have it in there,
you can add it to Filters Unlimited
and it will do the same job.

Method

1. Choose 2 colors from your image:
   foreground - light;
   background - dark.
    

2. Add borders:
   3 pixels light border;
   2 pixels dark border;
     3 pixels light border.
    

3. Add a 20 pixel dark border. Select with your Magic Wand.
   Effects: DSB Flux filter -- Bright Noise, with these settings:
   
   
    

4. Keep selected.  Go to Effects -- Texture Effects -- Mosaic-Glass with these settings below.
   
   
   
   Keep selected
    

5. Effects -- 3D-Effects -- Inner Bevel, with these settings:  
   
    

6. Deselect ( Selections - Select None).
    

7. Repeat step 2, but begin with the dark color, then light, then dark. 
    

8. Add a 30 pixels light color border. Select with the Magic Wand.
   
   Go to Effects -- filter: VM Toolbox -- Tiler, with these settings: 128-46-26-106
    
   
    

9. Effects -- 3D-Effects -- Inner Bevel with the same settings as in step 5.
    

10. Add a 3 pixel border in the dark color.
     

11. Add your corner as a new layer.
     
    I first reduced the image to 350 pixels in width and then added the corner. I did it like this: Place your corner at the top left side in the position you want it.
    Go to Simple filters ---TopLeftMirror.
    Click on OK.
    The filter will place it exactly
    where it should be in all 4 corners,
    without all the copy and paste and
    new layers, and merge actions you normally need.
    You can decide if you first want to place the corners
    and then reduce the image, or visa versa.

Another example: