The following quick tutorial shows how to create a Woodcut-style, deepetched object from a photograph and put it on an old paper background.
1. Open the image you wish to style and after selecting (using paths or other methods) the image that you'd like to use, go to 'Select/Feather'. The number you subsequently enter is relative to the size of the source image. What you are trying to get is a slightly softened edge to the selection.

2. After copying the image select 'File/New'. The size of the new file will automatically be set to fit the copied data. Paste the image into this new file.
3. Ensure that the background colour is set to white then expand the canvas a little using 'Image/Canvas Size'.
4. Change the colour mode first to 'Grayscale' then 'Bitmap'.

5. Set the output to the same number as the input and select 'Halftone Screen' as the method.

6. The frequency is relative to size of the image so experiment with the settings to get the best result. Enter 45 degrees in angle and select 'Line' as the shape.

7. Open the 'Channels' Palette and whilst holding down the Apple key click on the minature of the image then go 'Select/Inverse' and copy the selection.
8. Open your background (see iStock for a selection of papers, etc) and paste the selection in on a new layer.

9. Apply a Colour Overlay using 'Layer/Layer Style'. Click on the colour to the right of 'Normal' and select a dark tone from the background using the pipette. I then typically darken the colour slightly using the brightness in the colour selection palette.
10. Lastly, set the layer mode to multiply and adjust the intensity to show a bit of the background through.
You can then move the image around quite freely. Be cautious with enlarging or shrinking the size as it tends to soften the woodcuts edges. It's better to get the image to roughly the size you need it prior to doing step four.