Click on the "Stationery & Layouts" button under "Select Size and Settings."

The "Stationery & Layouts" Wizard should open up. Here you can select some nice Stationery. Select something you like and then click on "Next Step."
You can further customize things here by changing the Background, Photo Size, Layout, Font, etc. Fool around with the settings here and when you get something you like, click "Done."

Photoshop Elements will launch your email program and start a new message with everything ready to go. All you have to do is click "Send." In this case, Photoshop Elements sent the photo right inside the message instead of as an attachment, which is good, because so many people are afraid to open attachments with all the viruses and worms, etc. floating around.
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