background looks transparent to me...
the cut's pretty bad tho
u should use the polygonal lasso tool for cutting out the pic
zoom in to about 500% and cut along the edge
it takes longer, but works SO much better
u also shud blend in biggie's right shoulder, cause the pic got cut off there
n for the border, u do this:
1. make a new layer
2. ctrl-click the sig bg (if u got ps) to select it, than go to edit>stroke to make ur border