Canvas size relative to Image size

I'm using Photoshop Elements 5.0. Windows XP. First post to this forum.
I'm trying to add a frame in artwork. When I add the frame, is the image resizing or the canvas resizing? In former post: http://www.adobeforums.com/webx/.3c05a367 they suggest to crop the image. However, when I do that, I'm resizing my image. How do I add a border without losing resolution or making my image smaller?

Glenda,
Glad that it helps with your project.
There are 2 concepts involved, as I see it.
1. One can established a permanent resolution via Image>resize>image size.
Let us assume that you open a picture file from your camera with
width=31.778 inches
height=23.7787 inches
resolution=72/px/in. Note that this metric is in inches, not pixels, for this drill.
now change resolution to 325px/in. Then
height=7.04 inches
width=5.268 inches
The absolute values may be different for your files, but the principle is the same: as the pixels count goes up, the picture size, in inches, goes down - inverse relation. Try it out in your program.
2. The frames take up real estate, if you will. If you buy a frame for a picture, the outside dimensions of the framed picture will be larger that the paper picture inside. One can make the picture smaller in elements, compensating just enough for the real estate consumed by the frame, but that, to me, would become a nuisance.
Unless there is important information at the edges of the picture (e.g.a sign), it is my experience that application of the frame is not deleterious. Note that in the layers palette there is an f icon in a circle. Double click this to adjust the bevel. Layer>layer styles>scale effects is an option which is quite handy.
Ken

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