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Now, you'll need to desaturate the image. You can do this by pressing Shift+Ctrl+U, or you can click on Image >> Adjustments >> Desaturate.
Next, use Curves, Levels, or Brightness/Contrast to add lots of contrast.
Then, use the polygonal lasso tool (0 px feather) to select an area to use for your border. I highlighted the area I chose in red for easy visibility in the tutorial.
Press Ctrl+C to copy the selected area.
Now, open the photo that you'd like to apply the border to.
Click on Image >> Canvas Size. Make sure that the "Relative" checkbox is checked, that the extension color is white, add 1 inch to both the width and the height, and click OK. Your photo should now have a white border surrounding it.
Next, press Ctrl+V to paste the selection from the original photo.
Use the transform controls (Ctrl+T) to tilt, resize, and move the section of border to where you'd like it. Press enter to commit the transformation changes.
Now, press Ctrl+J to duplicate the border layer, and again use the transform controls (Ctrl+T) to stretch and skew the border. After you have pressed Ctrl+T, you can right-click on the border and choose "flip horizontal" or "flip vertical." That will make it so you can have the right, left, top, and bottom sides of the border. This is the end of the basic grunge border tutorial, but if you want to do something a little different with your grunge border, read on.
Now, let's say that you want the "grungy" edge of the border to face the inside of your photo. Here is how to do it:
Make sure that the border layer is selected in the layers palette. Press Ctrl+T to get the transform controls, then right click on the border and click "flip horizontal" so the white edge is facing inside the photo. Press enter to commit the transformation.
Then, click on Select >> Color Range. Use the eyedropper tool to click on the white area of your border, and click OK.
Again making sure that the border layer is selected in the layers palette, press delete once or twice to get rid of all of the white.
Now, simply press Ctrl+J to duplicate the border layer and use the transform controls to stretch, skew, rotate, and flip the border to get the other 3 sides.