Step 2
Open the png template files included in the zip.

Step 3
Start with the bottom layer png use the following command. Select All ( your “marching ants will surround the entire image including the transparent parts within it . Now go Edit - Copy.

Step 4
Move to your new layout and go Edit Paste.
The template piece will now paste into the correct position within your empty layout.

Step 5
To fill your template piece with some background paper , choose a background to use from your files and open it . Copy and paste or drag it into your layout so it completely covers your template piece.
You may want to turn down the opacity of this layer so you can see the template layer underneath

Step 6

In the layers palette go to the template layer and use the magic wand

Click anywhere on the coloured portion of the template layer to select it . The marching ants will surround the template area.
(If your template layer has a rough edge - such as on a torn edged layer - it may be better to cntrl- click on the layer to select it.)

Move up to the background layer and Select - Inverse - then hit the delete button . The excess of the background will be deleted.
You can turn up the opacity on that layer again now.

Step 7
If you need to add a drop shadow you can do it now ( some template layers will include small drop shadows but you may wish to add more)
Click on the black f button at the bottom of the layers palette to open the layer styles palette and select drop shadow.

Adjust the shadow to your requirements.

Now you can move on to the next piece of template and fill each piece as you desire until your layout is complete.

Photo layer

The same concept applies when you reach the photo layer.
I have copied and pasted the photo placement layer - then dragged in the photo. I have reduced the opacity of the photo and then used the transform tool ( HOLDING SHIFT KEY DOWN WHILE DRAGGING CORNER to maintain proportions) I am going to resize the photo so it fits over the photo placement template.
I then move to the template layer in the layers palette and use the magic wand to select the white portion of the photo placement layer.

Move to the photo layer - Select Inverse and hit delete to delete the excess of the photo.

NOTES
Each template is slightly different in its concept. Some layers do not require filling - such as torn edge layers.
Some layers you may wish to fill with colour instead of background paper. To do that simply use the magic wand to select and edit fill

You may wish to add a background layer first before adding the template layers - this is optional - it can be added at any stage - just move the layer to the bottom of the stack in the layers palette by clicking on it and dragging it to the bottom of the stack

For some Layers you may wish to fill differing portions with different backgrounds.

The same concept will apply- You will paste in the template layer.
Drag in the background you wish to use as a fill
Use the magic wand to select the portion of the template layer you wish filled with that background.

If there are several pieces you wish filled with the same background hold the shift key down while you click on the separate pieces to add them to your selection.

Select - Inverse and on the background paper layer hit delete to remove the excess .
Repeat for other portions of the template layer you may wish to fill with differing backgrounds.

Click here for a printable copy of this tutorial.