The paste into effect has a number of abilities but can be often used for pasting an image into text or an image into a border. To do it, copy the image you want to use(select with marque then control-c), then use the magic wand tool to select what you want to paste into. Go to the Edit drop-down menu, and use Past Into. From there you can use the arrow tool to move the image around in the pasted area.

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