Rats ...I was all ready to post to you and remembered I use PS Elements 2 also but for avatars and cropping only...I use Paint Shop Pro for frames - I wish I knew you wanted PS elements - I Could have burned you a copy of mine -
The best thing to do is search the net - Type key search word like
Photoshop Elements 2.0 frame help ...etc ....see what comes up in your searches - they have GREAT tuts on the net to learn these programs.
I CAN step you thru how to make avatars if you have a day to learn...
just kidding - not a whole day...but I would have to be on AOL IM or yahoo IM to do that