I finally figured it out and It comes out beautiful! Here's what I did:
Open your photo (image) and place it on your background as a new layer.
Rotate your photo slightly (you will now have "jaggies" on the edges of the photo.
To eliminate them, pick the lasso tool and set selection type = point to point and antialias = on.
Make your selection by clicking your mouse once just inside the top left corner of the photo, then click again at the right corner, then the bottom right and then double click back at your starting point. You will see the "ants".
Now, copy (ctrl + c) and paste (ctrl + e )to your layout as a new raster layer.
What a difference! Nice smooth edges! You can then add drop shadow or decrease opacity to make this a page background.
The clues came from a tutorial on Perspective from Pinoy 7 website.
http://www.pinoy7.com/psptutorials/perspective.shtml
Thanks to you all for your help and let me know what you think after trying it!
Sandy
