Actually, I was referring to photographs when I said photos. We want to use one of your photos as the background. If you look at my sample, it should give you an idea of what I was looking for. You're on the right track with the layering effects.
is a feature in Photoshop Elements 10, It's in the Effects panel, normally found on the right side of the screen. It's in with the Drop Shadow, Bevel, etc. I've attached
a screen shot to give you an idea of where to find it.
are basically just a page that is transparent other than where the design or effects are. In traditional scrapping, think of a transparency with stamping and inking placed on top of a paper.
Here are a few examples of overlays from a freebie site I like:
MS Flower overlay 4 - Freebie overlay - DigiScrapDepot.com
Grunge-n-up-Overlays - a sample - Freebie overlay - DigiScrapDepot.com
CU Overlay February 2011 by Redju - Freebie overlay - DigiScrapDepot.com
The above samples are all from a freebie site called DigiScrapDepot. There are many free overlays at various freebie sites, as well as at most digiscrap online shops. You can make them yourself as well!
Hope this helps!