Sorta-rounded rectangle help?

I need help on getting this shape.


(I took the icon from a forum board, forgot where. Sorry!)

I know all I have to do is probably color the opposing ends with the same color as the background. But the help I'm seeking is to achieve the shape using a picture instead of a solid color background.

Hope I'm not confusing anyone by this. Thanks for any help in advance..

Edit: Oops, forgot to add this in. I use both PSP7 and PS7. (I'm too lazy to update to the newer programs.)