This is my first attempt at creating a template.
I created it in Photoshop Elements 7 and it's quite basic - let me know if you have any trouble with it. I've added two rounded corner options (shown below) the shadow effect can be turned off as well, if that's not your thing.
open the template in photoshop, as well as the photos you want to add to your template
drag your first photo onto your work space
drag the photo down in the list of layers to under the #1
resize the photo to fill the template area
repeat those steps - dragging the image layer under the number of the template block
turn off the numbers and you're done!!