OK - lets get started

1. Open your graphic, press shift D twice to make 2 copies. Close your original and minimize one of your copies

2. Resize your other copy to around 200 pixels and apply seamless tiling, then minimize this tile and bring up your other copy

3. Add a raster layer, then flood fill with a colour from your graphic. I used #08556c - make this your background colour. Apply the mask I've supplied with the following settings

4. Go to your layer palette and merge your mask group, then apply the following drop shadow, repeat with minus values

5. Add a symmetrical border of 25, click with your magic wand and flood fill with your background colour, note the numbers on this colour then apply Locas Artistic Effects - Ice with the settings below, changing the colour to your background colour. Do not deselect

6. Invert your selection and apply the following cutout. Deselect

7. Add a symmetrical border of 40, click with your magic wand then flood fill with the tile we made earlier. Deselect

8. Repeat steps 3, 4 and 5 (flood fill with your background colour, apply mask, drop shadow, border of 25, locas ice, invert, cutout)

That's it - all done!