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Shadows and Light cont.
Gaussian blur the layer by 1 or 2 dependant on the dullness you want for the frame.
Add a new layer, then add crosshairs again.  with the shapes selection tool set at square,select then delete the middle, the inside of the frame. Give it a gaussian blur of .50. Hide the background layer and from the layers palette choose merge visible.
There you basically have a frame or setting for your Jewel. Rotate it by 45 degrees. Make visible all layers and move the jewel layer under the frame.  If the frame is too big, resize it by 98.  I have embellished my setting with some font dingbats and adjusted the brightness and contrast for a more tarnished effect.
Here is a sample using some fire for the environment.
This one is some pansies that I colorized purple.  
By the way, this can be done in Blade Pro. I have made a preset just for this effect. I really prefer the freehand method, but if you just don't have the time then try it in Blade Pro.