No, it isn't. It is combining two images (frame as the second image) and that's not allow in minimal, basic and advanced editing :)
Edit: I believe in Expert editing, it's ok though... also, I think you will have to take a photo of a frame such like this somehow or create in PS to be able to use it. You must be the author of the frame if you want to use it.
If the poloroid was taken during the challenge period and you took a photo of that poloroid during the challenge period, I can't see why not.
I am not sure if we can enter a Polaroid photo in this website. All images must be digital, and copies of other "photos" are not allowed. Frames can be created by either taking a photo of a Polaroid, but using only the frame of it, or using Photoshop to create similar frames with some shadows.
I think same rules apply here. You either have to take a photo of something that can be used as frames, or create it in PS... and this is only good in expert editing. In other editing you can't combine two images or PS layer your original image.
I am sure one of the SC's will jump in and put their own two cents here as well :)
I'd submit the picture to the Site Council for their input. I don't see anything wrong with the 2nd frame - it is obviously a frame. However, because of the rounded corners on the picture, it may be challenged to assure it isn't a picture of a picture.
