This will show you how to age paper and make an old photograph.

Make the Paper

Make an oversized file, probably 800x800px will do.

Draw a rectangle with the Rectangular Marquee tool and fill it in with a very pale, yellowish color.

Take a picture of rust or scratches and copy and paste it into the rectangle selection. You might have to paste more than one to cover the whole rectangle.

On the upper image, use the Eraser with a soft round brush and remove the hard edge overlap.

Merge the two rusty images together, leaving the original rectangle separate.

Desaturate CTR:+SHIFT+U.

In the Layers window, change the rust's blending option from Normal to Soft Light.

Merge the rust with the rectangle layer.

Adjust the layer's Levels. CTRL+L. Play with the sliders until the areas become more visible, but not too harsh.

Use the Burn tool with 15% exposure and a soft round brush and go around the edges a couple times.

Draw a circle with the Elliptical Marquee tool at once of the corners (hold SHIFT to make a perfect circle).

Invert the selection CTRL+SHIFT+I. Get the Eraser and erase the corner.

Using the Eraser, select a Chalk brush at 100% opacity. Go around the corners and the edges and remove small pieces of the paper.

Use the Burn tool again and darken the edges and some areas inside of the rectangle.

You're done with the paper. If you want to make a photo, continue!

Make it a Photo

Take your photo/picture and copy and paste it on top of the paper you made, then trim it down to fit.

Adjust the Hue/Saturation CTRL+U to make the color of the photo match the paper.

***Note: If you have a picture that is in full color and you want it black and white or sepia, desaturate it CTRL+SHIFT+U and then colorize it CTRL+U, click the colorize box and change the hue/saturation/lightness.

Old photos are usually faded here and there, so that's our next step.

With the Eraser, a soft round brush, at 20% opacity, and about 300px and less, erase some areas. A couple clicks and drags here and there should do it nicely.

Now, we'll burn the corners and some edges.

You guessed it, we'll be using the Burn tool. Up the Exposure to about 70% and scale the brush down to about 20px or 30px. Very carefully burn along the edges a little. Be sure to keep this subtle, we don't want it to look tacky.

And then do it a second time as well.

Duplicate the photo's layer and erase some of it if you want. This will make it darker in some areas and still faded on the edges.

And you're done.