Found this tutorial while surfing and thought you might like to try it.
The part you select is in color the the rest of the image is B/W.
I did this in PS7 and don't think it works in Elements.
Beautiful job putting this together Ed. If you have Photoshop you might want to investigate the Polaroid Frame action that is part of the Corkboard action set I posted the link to the other day. It's in the files section of Digipets.