If anyone is following this thread and is interested, here is a bit more info.
I've been surfing the web to learn more. This is what I have found out so far. "Actions" in PS are "Effects" in PSE2. There is an effects pallett that you can pull down and use as you would any of the others. One of the effects is "frames".
I found an "action" at Photofreaks.com written for PSE that you can purchase ($14.95) that will run the steps required to create various frames for you. I believe this is nothing more than what I thought to begin with...that these frames are a series of steps modifying the canvas behind the photo. What I would like to learn now is what are the steps involved and whether they are so involved that it is worth the $15.00 to buy the "action" and let it do the work for you or if I can do it myself in a reasonable amount of time.
Jay Arraich's Elements Tips at http://www.arraich.com/elements/psE_intro.htm has a lot of useful info that I think will eventually tell me what I want to know.
I'm impressed with elements. Haven't found anything (yet) that I have wanted to do that I can't with this program. At this point I see no reason to spend the money on PS7. I only wish Canon would have included a users guide with the copy that came with my 10d...