Our eagle image stands ready for borders in CS3.

Make a rectangular selection and then invert the selection. Utilize the Quick Mask tool or simply press the "Q" key.

Filter > Distort > Glass

Exit Quick Mask and inverse the selection once again. Press Cntrl + Shift + J to place the background on its own layer.

Click on the background layer in the Layers Palette and fill with white. And there you have it.