|5 Deselect selection by pressing [CTRL+D]. Delete current layer (Layers>Delete) and this will leave you the background layer.
Now, load the saved selection (Selections>Load from Alpha Channel)
Apply Inner Bevel Filter
PSP6: Image>Effects>Inner Bevel
PSP7: Effects>3D Effects>Inner Bevel
(Sharpen your image (Image>Sharpen) after applying the Inner bevel)
Inner Bevel Settings