Variation: Experiment with filters

Photoshop Elements has lots of filters and interesting effects. Now that you have your background on a separate layer, you can experiment with filters. Expand the Styles and Effects palette and choose Filters from the Select a Category pop-up. Select All from the Select a Library pop-up. When you see a filter you want to try, select it and click Apply.

Background Cuttout filter

Background with Clouds filter