Step 1
First we'll create the frame. Although our final image will be 1200 pixels wide and 800 pixels high, we'll start by drawing a frame which is bigger than our final image. Thus we'll have more detail on the frame, then we'll scale it down to fit in our final composition. Now create a new document
Step 2
Create a new layer and name it "Wood." Set your Foreground Color to #994400 and Background Color to #ffcc66. Fill the layer with your Foreground Color. Go to Filter > Render > Fibers. Set the Variance to 16 and Strength to 55, then apply.

Step 3
Hit Command + T to enter Free Transform mode, set the Reference Point Location to middle-left, set the Horizontal Scale to 30%, and hit Enter twice to apply. Scaling the layer down horizontally makes the texture more dense.
Step 4
Get the Rectangular Marquee Tool, set the Style to a Fixed Size and set the Width and Height to 125 pixels. Click anywhere on the canvas, then move the selection to the top-left corner of the canvas. Drag two horizontal and two vertical guides from the rulers (Hit Command + R to make them visible if they are not) and snap them to the edges of the selection. Move the selection to the bottom-right corner of the canvas, then drag the guides around the selection.
Step 5
Create a new layer and name it "Dent 1." Get the Rectangular Marquee Tool, make sure Style is set to Fixed Size, then set the Width to 38 pixels and Height to 1200 pixels. Make a selection. The selection I made is 20 pixels away from the left edge, so you can place the selection to the most left of the canvas and move it 20 pixels right by hitting the Right Arrow key two times, do this while holding the Shift key. Fill the selection with the Foreground color and the Deselect.
Step 6
This rectangle is going to be one of the dents in our wooden frame. We'll now apply two layer styles to it. First set the layer's Interior Opacity (Fill) at 0%. Now apply a Bevel and Emboss layer style to the layer using these settings: Style set to Inner Bevel, Depth set at 75%, Direction set to Down, Size set to 40 pixels, and Highlight Mode Opacity set at 100%. Next, apply a Gradient Overlay and use the following settings: Blend Mode of Multiply, Gradient set at Black to White, Opacity set at 70%, Angle set to 0 degrees, and Scale set at 150%.
Step 7
We are going to make two more dents. Create a new layer named "Dent 2." Get the Rectangular Marquee Tool and set the Width to 32 pixels and make a selection. Snap the right edge of the selection to the second vertical guide and move the selection 18 pixels left. Fill the selection with the Foreground Color. Create another new layer and name it "Dent 3." Make another rectangular selection which is 12 pixels wide and place it 2 pixels left from the second guide, as you can see in the below image, then fill with the Foreground Color again and Deselect. Now go back to the "Dent 1" layer in the Layers palette, go to Layer > Layer Style > Copy Layer Style. Select both "Dent 2" and "Dent 3" layers in the Layers Palette, then go to Layer > Layer Style > Paste Layer Style.
Step 8
Now we're almost done with the left piece of our wooden frame. Select all Dent layers and the "Wood" layer in the Layers Palette and go to Layer > New > Group From Layers. Name the group "Left." Duplicate the "Left" layer group and name it "Right." Make the "Right" layer group invisible for now.
Step 9
Go back to the "Left" layer group, open it, then go to the "Wood" layer. Also, make sure Guides are visible. Grab the Rectangular Marquee Tool, set the Style to Normal, and make a selection as shown below, and hit Delete to clear the selected area. Deselect by hitting Command + D. Select the "Left" group in the Layers palette and go to Layer > Merge Group (Command + E).
Step 10
Go to the "Right" layer group in the Layers Palette and open it. Select the "Wood" layer and go to Edit > Transform > Flip Horizontal. This way we won't have the exact same texture in for the left and right pieces. Get the Rectangular Marquee Tool and make a selection, then clear by hitting Delete. Deselect by hitting Command+ D.
Step 11
Select the "Right" Layer Group and go to Edit > Transform > Flip Horizontal. Move the layer group to the right of the canvas as shown. Open the layer group and change the Blend Mode of each Dent layers' Gradient Overlay Layer Style from Multiply to Screen. Select the "Right" Layer Group in the Layers Palette and hit Command + E to merge.
Step 12
Duplicate the "Right" layer and name it "Bottom." Hit Command + T and rotate it 90 degrees, then place it at the bottom of the canvas. Duplicate the "Left" layer and name it "Top." Rotate it 90 degrees, then place it at the top of the canvas. Go to the Layers palette and drag the "Top" layer above the "Right" layer.
Step 13
Grab the Polygonal Lasso Tool and make a selection with the help of the guides, then hit Delete to clear.
Step 14
Go to the "Bottom" layer in the Layers Palette and do the same thing for the bottom part: Make a selection with the Polygonal Lasso Tool and hit clear. Go to the Layers Palette and select all layers except for the "background" layer, then merge them by hitting Command + E. Name the merged layer "Frame."

Step 15
Hit Command + A to select all and then hit Command + C to copy. Go to the Channels Palette and create a new channel. Hit Command + V to paste. Go to Filter > Artistic > Paint Daubs. Set the Brush Size to 1, Sharpness to 10, and set the Brush Type at Simple. Command-click the Alpha Channel to load the white areas as a selection.
Step 16
Go to the Layers Palette and select the "Frame" layer. Go to Layer > New > Layer via Copy and name the new layer "Bumps." Apply a Drop Shadow to the "Bump" layer with these settings: Blend Mode set to Multiply, Opacity at 90%, Angle set to 120 degrees, Distance and Size set to 3 px. Apply an Inner Shadow layer style using these settings: Blend Mode set at Color Burn, Opacity at 100%, Angle set at 120 degrees, and Distance and Size set to 0 px. Next, apply a Bevel and Emboss layer style and use these settings: Style set to Inner Bevel, Depth at 1000%, Direction set at Down, and Size set to 0 px.
Step 17
Now select all the layers other than the "Background" layer and merge them by hitting Command + E. Name the merged layer "Frame." Now we need a photo to put inside the frame. Open it in Photoshop and drag the image into your "Frame" document, place it beneath the "Frame" layer, then scale and position. Name this layer "Photo." Go to the "Frame" layer and apply an Outer Glow Layer Style using these settings: Blend Mode of Multiply, Opacity set at 40%, Color set to black, and Size set to 9 px. Now apply a Drop Shadow with these settings: Blend Mode set to Multiply, Opacity at 35%, Angle set to 120 degrees, Distance set to 3 px, and Size set to 9 px.
Step 18
It is now time to make the glass. Actually, we'll make the reflections. You can get the image that is reflected on the glass anywhere from internet. Open it in Photoshop and drag it into your "Frame" document, then scale and place as shown below image. Go to Filter > Blur > Gaussian Blur and apply with a Radius of 3 pixels. Set the Layer Blending Mode to Screen and Opacity at 15%. Name this layer "Ref 1." We need two reflections on the glass, so duplicate the "Ref1" layer and name it "Ref 2." Move the "Ref2" layer five pixels left.
Step 19
Create a new layer above the "Ref2" layer and name it "Highlight." Grab the Rectangular Marquee Tool and make a selection as shown. Get the Gradient Tool, set the Gradient to Foreground as Transparent and set it to a Radial Gradient. Select white as the Foreground color. Fill the selection and Deselect.
Step 20
Hit Command + T and scale the highlight down horizontally and up vertically, as shown below. Go to Filter > Blur > Gaussian Blur and apply with a Radius of 3 pixels.
Step 21
Now we'll make the dirty edges of the glass. Go to the Channels Palette, create a new channel, and name it "Dirt1." Go to Filter > Render > Clouds. Go to Filter > Artistic > Film Grain, set the Grain to 9, set the Highlight Area and Intensity to 0, and hit OK. Go to Filter > Brush Strokes > Accented Edges, then set the Edge Width to 1, Edge Brightness to 20, Smoothness to 1 and apply.
Step 22
Create another channel and name it "Dirt Area." Make sure the guides are visible. Grab the Rounded Rectangle Tool, set it to Fill Pixels, set the Radius to 25 pixels, and choose white as your Foreground color. Draw a rectangle vertically.
Step 23
Go to Filter > Blur > Gaussian Blur and apply with a Radius of 15 pixels. Go to Image > Adjustments > Levels (Command + L) and set the Shadow Input Level to 200 and Highlight Input Level to 220. Now apply another Gaussian Blur filter, this time with a Radius of 7 pixels. Now go to Image > Adjustments > Invert (Command+I). This channel will define the area that the dirt will be visible in. Now Command-click the channel in the Channels Palette to make a selection out of the white areas. Alt + Command-click the "Dirt" channel to select where the white area of the "Dirt" channel intersects the already selected area.
Step 24
Go to the Layers Palette and create a new layer below the "Frame" layer, then name it "Dirt1." Fill the selection with the color #a79988. Go to the Channels Palette again, then Command-click the "Dirt Area" channel to load the selection. Go back to the Layers palette and create a new layer above the "Dirt1" and name it "Dirt2." Fill the selection again with the color #a79988.
Final Step
The frame is almost finished. Before we merge the layers, lets make some final adjustments. Go to the "Frame" layer and hit Command + U to bring up the Hue/Saturation dialog. Set the Saturation to -15. Go to the "Photo" layer, press Command + U again and set the Lightness to -10 and apply. Now we're ready! Go to Layer > Flatten Image.