Fading Borders - 3

Original image:

If your image is a GIF, first increase the color depth by choosing:
Colors - Increase Color Depth - 16 Million Colors.

Step 1:
Select the background color. Letīs use a light brown in this example.
Choose: Image - Add Borders. Choose: Symmetric = 10.

Step 2:
Select a circle of 150 x 150, Feather = 0.

Step 3:
Choose: Selections - Invert.
Fill the selection with the light brown background color.

Step 4:
Image - Special Effects - Add Drop Shadow.
Select: Color = Background Color, Opacity = 255, Blur = 10.
We are going to add Drop Shadow four times with the same settings as above, but with different Offsets:
1st: Vertical = 3, Horizontal = -3.
2nd: Vertical = -3, Horizontal = -3.
3rd: Vertical = -3, Horizontal = 3.
4th: Vertical = 3, Horizontal = 3.

By choosing other settings in "Add Drop Shadow", other fading effects can be achived.