Gaussian Blur Effect
I find this a really awesome way to highlight your images! :)
I will be using this picture:

Make sure your layer palette is out. Click L and it will appear :)

Now you need to duplicate your background layer. To do so, right
click on background and go to Duplicate. You should now have
another layer on top of the background layer, called copy of background.
With your duplicated layer go to Effects>Blur>Gaussian Blur.

I have set my radius to 2.00, you can set it to different numbers for different
results.
Now press OK. Go to your duplicated layer and click Overlay. You're all
done! :)
You should now have something looking like this:

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