Crop your image to desired size and area. Promote to layer (layers>promote background layer). Using rectangle marquee, chose the area around the object you want popped out. Promote to layer. Select background layer again and delete.
Open new layer above the promoted selection, lower opacity and paint the area you want popping out.
Increase canvas size (Image>Canvas size) 100 pixels or 1" in each direction. Placement mode should be in the center.
Select background layer. Control+a, Control+f, Control+shift+f. Go to Selections>Modify>Expand. (The number of pixels to expand is going to be relative to the size of the photo.)
I didn't like the rounded corners so I am putting guidelines down where the marquee falls. You are going to want to zoom in and place your cursor over one of the marquee lines to see where it is on the ruler so you can move the guideline there. Once you get a guideline the marquee disappears until it is placed.
Font(s): Burst My Bubble; jamaistevie