duplicate background image on a new layer
rename background layer
with bottom layer active, enlarge canvas (I used 200 pixels in both vert and horz)
transform tool, stretch bottom layer to fill new canvas size
add texture and blur to bottom layer
add layer styles to the duplicate image layer
optional: added a gold stroke with bevel/emboss (layer visibility turned off)

Link to discussion: http://forums.dpreview.com/forums/read.asp?forum=1006&message=16346448