I'm assuming you've got two layers, your background (white) and on top of it, your image, which is of course smaller than your background and centered...
All you have to do is double click on the name of the image layer, and you'll get a "layer style" dialog. Check the "drop shadow option".
By fiddling with the angle of the drop shadow, distance, spread, and size, you can get any variation of the effect you are looking for.
And if you need to know how to get your pic in a separate layer, select your entire image, then copy or cut it. Now create a new file and paste your image. PS will automatically size the new file to your copied image and place it in a new layer. Then do what sylandrix said.
If you want frames like that one and about fifteen others just go to shutterfreaks.com, go to their photoshop actions area and by there frames action. About ten bucks... Dave
Or I've made available a drop shadow action and a simple two colour border framing action at this link. Free for non-commercial usage. Save the file above into your photoshop actions directory. You may need to load it into the actions palette. You may also need to right click and use 'save as' to download the file, depending on your browser.
The Colour border framer action is legal for DPChallenges, but the drop shadow one is not currently allowed. As ever, no warranties, no guarantees and you are entitled to as much support as you've paid for.
Thanks for your help. I was missing some info on how to do it, and you sent me in the right direction to figure it out. I haven't tried the action yet, but I will definitely give it a try.
Like Gordon, I recorded an action in PS 7.0 for drop shadows. It's alot easier when you want to covert a bunch of images like I did here. (Thanks Gordon for pointing me in the right direction).
Right click the link and choose "save target as" and save it in your photoshop actions folder. Then open an image in photoshop. The action should now show up under the actions tab (if you don't see an actions tab go to "window" and click "actions").
Right click the link and choose "save target as" and save it in your photoshop actions folder. Then open an image in photoshop. The action should now show up under the actions tab (if you don't see an actions tab go to "window" and click "actions").
You'll have to load it into the actions pallet first.