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That's not an easy border to make. However I'm sure Mark can spit it out in less then 2 tries. At first glance what I see is probably an initial gradient work followed by clouds overtop with blend mode probably either set to hardlight or overlay. This is just my first guess, I could be completely wrong.
Hurricane H
Here is a quick and dirty frame I came up with, no exactly like the one you pictured, but it can probably be tweeked a little. If you like I can send you the .psd file with all the layers so you could play with it [confused]
Looks like a frame rectangle with Bevel and Emboss Contour giving the different raised effects, and then what appears to be a reduced opacity layer of possible elvish runes pillow embossed, and then another layer with some grunge brushing in brown. Add lighting effects to complete.
If you are new to PS, you will find that some effects cannot be done in a few steps, and when you are more experienced with PS, you will find that you don't have to ask how it's done, you'll guess and experiment like the rest of us do.
Madster:
I agree, experience counts, and practice and experimentation is the key, however, one should never be afraid to ask for help, as this is what this forum is all about.
:B [confused] [righton] [righton]
Here's what I was able to do with Layer Styles. I didn't take the time to create a special texture to match the alphabet-like highlights. I was going to add the .asl file to this post but to my surprise it was 504kb! Oh well, it is very complex. If you really want the .asl I can put it up on my public file sharing folder this afternoon when I get home. I'll be away from the computer today...
It is a layer style. They were introduced in PS 6 and enable you to create complex textures and effects with one click, once you have created the combination of bevels, shadows, glows, and various overlays. If you really want to get a handle on Layer Styles, I'd suggest that you get a book/CD called "Adobe Phtotshop 7 One-Click Wow! Among the goodies on the CD are over 300 of the best Styles I've seen anywhere. With those as a 'starter kit' through modification and experimenting of those and by seeing how styles are made you can best learn how they are made. I love 'em!
PS you could find the book on Amazon.com from other resellers about half price ($15 plus shipping of course).