go from this to 
(rain effect optional)
Make the Insert
First make your insert. Take your image and crop it down. Because this image is going to be quite small, you might want to zoom in on the face, but whatever you like best. I wanted a rain effect, so I choose a rainy subject, this is Claudia Black in Farscape. Farscape-caps.com
The original cap is quite dark, so duplicate the image and set it to screen 100%.
Then create a new layer and fill it with a teal gradient by 
awmp (or use a solid color) set to dodge 40%.
She looks a little peaked, so create another raster layer and fill it with a flesh tone #E1D2AF set to soft light 100%
Then add a 2 point border around the whole thing, merge all layers, and then create the base.
The Base
blimey_icons Use this watercolor texture as the background image.
Create a new raster layer and fill it with white.
77words Use this brush set to ERASE on the white layer.
Paste the insert as a new layer and position to taste.
Embellishments
I used a brush by fromchouchoune to make the swirlies under the insert and two tiny text brushes by ohpaintbrush to embellish.
Rain effect tutorial bynardasarmy here
Select the picture part of the inset (not the border). Create a new layer and fill with a dark grey. Then go to Adjust/Noise/Add Noise. I set this to Gaussian, Monochrome, 50%. Then go to Adjust/Blur/Motion Blur. For this picture, use 180 degrees, but it will vary on the rain direction in the picture you are using.
Then change the settings on the layer. You can use screen, lighten, soft light, or hard light. Play with it until you like it. I set this one to lighten 68%. Erase any part of the picture you don't want to rain.
Repeat the process, only change the Add Noise percentage. I used 35%, use what ever you want. Erase any part of the picture you don't want to rain.
Now, take one rain layer and move the opacity slider to 0%. Export gif as rain1.gif
Move the slider back to the original percentage and move the other rain layer to 0% Export gif as rain2.gif
Open Animation Shop, the settings I used were "Open same size as first frame (doesn't matter, they're the same size), Opaque, Center in Frame, with canvas color, yes-repeat indefinitely, set timing to 1, add rain1 and rain2, and finish". Save it and there you go. :)
Make the Insert
First make your insert. Take your image and crop it down. Because this image is going to be quite small, you might want to zoom in on the face, but whatever you like best. I wanted a rain effect, so I choose a rainy subject, this is Claudia Black in Farscape. Farscape-caps.com
The original cap is quite dark, so duplicate the image and set it to screen 100%.
awmp (or use a solid color) set to dodge 40%.She looks a little peaked, so create another raster layer and fill it with a flesh tone #E1D2AF set to soft light 100%
Then add a 2 point border around the whole thing, merge all layers, and then create the base.
The Base
blimey_icons Use this watercolor texture as the background image. Create a new raster layer and fill it with white.
77words Use this brush set to ERASE on the white layer.Paste the insert as a new layer and position to taste.
Embellishments
I used a brush by from
chouchoune to make the swirlies under the insert and two tiny text brushes by ohpaintbrush to embellish.Rain effect tutorial by
nardasarmy hereSelect the picture part of the inset (not the border). Create a new layer and fill with a dark grey. Then go to Adjust/Noise/Add Noise. I set this to Gaussian, Monochrome, 50%. Then go to Adjust/Blur/Motion Blur. For this picture, use 180 degrees, but it will vary on the rain direction in the picture you are using.
Then change the settings on the layer. You can use screen, lighten, soft light, or hard light. Play with it until you like it. I set this one to lighten 68%. Erase any part of the picture you don't want to rain.
Repeat the process, only change the Add Noise percentage. I used 35%, use what ever you want. Erase any part of the picture you don't want to rain.
Now, take one rain layer and move the opacity slider to 0%. Export gif as rain1.gif
Move the slider back to the original percentage and move the other rain layer to 0% Export gif as rain2.gif
Open Animation Shop, the settings I used were "Open same size as first frame (doesn't matter, they're the same size), Opaque, Center in Frame, with canvas color, yes-repeat indefinitely, set timing to 1, add rain1 and rain2, and finish". Save it and there you go. :)