This is probably not at all what it is supposed to be.
I selected a photo, opacity to 40 %. Put a paper behind it, reduced also.
Then for step 2 I overlaid another photo of branches, opacity to 40%. (I just couldn't see them at 30%)
Then for added effect I found a sepia option and it started going with this jagged edge and I thought it looked interesting.
About "overlays", this is a product to buy right? What is the "Stroke added to photo edge" - do I have that in PSE10?