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These instructions are for a PC using Adobe Photoshop CS5 to create a desaturated border for your images.
1) Open the image of your choosing to add this type of border.
2) Duplicate the background layer by using Control J. This will create a duplicate layer of the original image in your layer palette.
3) With the newly created duplicate layer highlighted/active, click in the Edit drop downs. Click on Free Transform. Then click Alt & Shift buttons & drag the handle towards the center to make the border. It is important to hold the Alt & Shift buttons down until you obtain the size image you wish. Press enter to commit when you are happy with the size.
4) Now click on Background layer to make it active. Create a Hue & Saturation adjustment layer. Lower the saturation & increase lightness to your liking.
5) Click on the scaled down photo layer (should be the top layer) and use Layer Effects to your liking. I like the drop shadow, inner glow, and bevel & emboss. These can all be adjusted individually in the Layer Styles box.
6) Before flattening you can also move the scaled down photo layer if you want to align the background layer to line up objects by clicking on the Move Tool.
7) If you want add some text in the border, select the Hue and Saturation layer you created directly above the Background layer.
Select the Text tool and click in the border where you want the text to appear. Using the background color and font type and size of your liking add your caption caption. To complete the look select again in your layer palette the Layer Effects. Try many combinations and remember you can also change the fonts.
8) The last step is to flatten your image and as always with all new images do a 'save as'.