A very straightforward way of rounding the corners of a photo or graphic is the following:

  1. In the Toolbox, choose the Rounded Rectangle Tool (click on the normal rectangle tool in order to see more options and find the rounded rectangle).
  2. Now,  from the toolbar above, click on the Paths icon. From the same toolbar, change the Radius to 80 pixels (experiment with your numbers here; this is going to change the roundness of your rectangle).
  3. At this point, you can start drawing your rounded rectangle on top and inside of your picture.
  4. From the Paths Palette, click on the double arrow to have access to the sub menu. Choose Make Selection, OK
  5. Click on Select, Inverse.
  6. Hit the Delete key.
  7. Now you have your picture or graphic with rounded corners.

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