Shell Cameos in PhotoImpact

This tutorial should be suitable for PI6 and higher versions, intermediate to advanced users.

You will need:

The cameo shell preset, cameo lighting preset and irishgirl.ufo contained in this .zip file. If you're unfamiliar with installing presets, please refer to Deb Hardisty's "Importing Downloaded Presets" tutorial.
Fantastic Machine's Paint Engine filter. Please check out Deb Dehaven's installation tutorial (second part only, not the PICO section), if you don't already have this installed.
FM Tile Tools filters

Choosing Images for this technique: I developed this technique with an eye toward being able to use a variety of image types. The examples posted here were done from colored Victorian prints and a black and white photo. You may find that large, dark areas in an image tend to appear recessed after the embossing step, rather than standing out. Sharp images produce better results than blurred, soft images. An image on a solid black background seems to work best, so prepare your image by "cutting it out", either by erasing the original background or making selections and deleting. Check out sites that feature PSP tubes or PI stamps for images that have already been prepared in this way.

Open a new image, 400x400 pixels, with a white background. Make a duplicate of your background (click the Copy button, then the Paste button), and use the Flood Fill tool to color it black. Open the irishgirl.ufo file (or the image of your choice) and drag her into your new image, centering her on your canvas.
Merge the girl and black layers as a single object. This will become your "Embossed Layer". Click on "Format>Data Type>Grayscale". Be sure that "Create New Image" is checked. Minimize the grayscale image and return to your original canvas.
Select the black layer with the girl on it. Click on "Effect>Material Effect>Emboss...", click on the "Options" button. Click on the button at 6 o'clock in the "Light Source" box and set the depth for "3". Click on the "Coating Color" box and set the Hex value to #FFCBB3. Click "OK" to close the Color Picker and then click "OK" to apply the Emboss effect.
Deselect all objects (right click in Layer Manager and choose "Deselect All Objects"), then click on "Selection>Import Selection...". Your grayscale image should show in the Import window. Click "OK". You should have a black and blue selection marquee outlining the girl in the image.
Click on "Selection>Convert to Object". A white ghost of the Irish girl should appear in your Layer Manager in the bottom position. Drag it to the top of the Layer Manager.
Select the embossed layer in your Layer Manager. Choose the Magic Wand selection tool: Select by Line, Similarity 2, Search connected pixels, Select on objects. Click somewhere on the background of your embossed layer, which should select everything EXCEPT the embossed image. You may have a few stray pixels outside the image that aren't selected. Use the Lasso tool in "+" mode to add those areas to the selection. If there are areas inside the embossed image selected, use the Lasso tool in "-" mode to remove those areas from the selection.
Apply Fantastic Machines Paint Engine filter, using the "brush strokes" setting.
Clean up the edges of your image using the Clone Paintbrush tool to eliminate the feathery edges created by the Paint Engine filter. Hold the SHIFT key and click somewhere in the background area. Move the brush around the edge of the selection, making sure that the square "source" box stays in the background area. You may need to reposition the starting point by holding the SHIFT key and right clicking again, as you move around the image.
Apply FM Tile Tools "Blend Emboss" filter, using the default settings.
Click on "Selection>Invert". Choose the Flood Fill tool, color white, transparency 80. Click twice in the selected area of the embossed image. (If you're using a different image that isn't as dark as the background areas of this image, you'll find this step isn't necessary.) Click on "Selection>None" or use Shift+G to remove the black and blue selection marquee. Apply the Cameo Lighting preset from your Easy Palette.
Choose the Standard Selection tool, Shape Ellipse, Fixed size: 250 x 350 pixels. Click on your canvas to create a selection, and center it over the cameo image. Click on "Selection>Invert". Click on the "Cut" icon (the embossed layer should still be selected). Click on "Selection>Invert" to return the selection to an ellipse.
Click on "Edit>Trace>Selection Marquee...". Click on "OK", then select "3D Round" mode. Apply the Cameo Shell preset to the oval. Move the oval layer to the bottom of the Layer Manager.
Set the merge methods for each layer as follows: "Ghost": Inverse of Multiply "Embossed": Multiply "Shell Oval": Always
For a simple frame, duplicate the shell oval, and change the material to a metallic preset (I've used the Filigree preset from CarolOyl's Gold Leafs series), "3D Pipe" mode, Border 4.
Here's your reward for completing this tutorial!