Open your Image and duplicate the layer. As we have to work on the Background layer, in the Layers palette click on the eye beside the Background layer copy to remove it from the screen. Select the Background layer then go to Image>Adjust-ments>Hue and Saturation. Reduce the Saturation to –50 and increase the Brightness to +50. Now select the Background Copy layer, click on the empty eye square to make it visible again and hit Control T for the Transform Tool. Hold down the Shift key and click and drag on the top right-hand corner and drag towards the centre for about an inch. Do the same with the bottom left-hand corner. You should now be able to see quite a bit of the underlying de-saturated layer.
Open the Layers palette and click on the fx icon at the bottom to open the Layers Styles palette and add a 5 pixel Stroke in black Positioned on the inside. Again open the Layers Style palette and this time select Drop Shadow with a Distance of 30 and a size of 30.