Open the image to be used as the background for the rectangular layout---The Baker River.
Switch to the Channels Palette and create a new Alpha Channel.
Select the Rounded Rectangle Tool and make a selection on the newly created channel.
Select the Move Tool, hold Ctrl+Shift+Alt and holding the left-mouse button, move the
rectangle to the right to duplicate the selection.
Repeat the process until you fill the channel with rectangles. Pay close attention to the
spacing between each rectangle; it will make for a nicer image when you finish the tutorial.
Deselect. Hold down Control and click on the channel to make it active. Use the Move Tool to
move the image exactly where you want it.
Switch back to the Layers Palette. Your selection will be active. Duplicate the current
layer (Control +J). All that is needed now is to delete the original layer (or otherwise hide it from view).