Here's my cropped picture, of Jodelle Ferland.
Using the lasso tool , I cut the background out.
I duplicated Jodelle twice, set the first to screen 100%, and the second I desaturated and set to overlay 100%.
Merge the three layers of Jodelle to one.
Select this layer and, I dunno what this is called so I'll just take a screenshot.
Click the f at the bottom of your layers window, and select Stroke.
A new window thing comes up and yas.
Use whatever color you like, I'm using white, and setting the size to 5px.
So now you have a purdy border around the image.
In this same layer style window, click on drop shadow up the top, and set it to 100% linear burn black. I put the angle to -180.