Photoshop and Dreamweaver: Rounding Edges

[carmi]

I currently have both fireworks and photoshop cs (with image ready) and I am wondering how to do the following in either:
1. I want to round the edges off a image?
2. Crop the canvas so the there is no blank space around the image. (This would require creating a covered canvas and I am clueless here)?
3. Possibly and a border to it?
All help would be aprecitated,
Thanks Evan:)

[TheBluePanda]

Could you show an example of what you're talking about?

[carmi]

Here is an image that has a rounded border. I am not sure if its is a rectangle with white on the edges or not
http://www.csszengarden.com/175/background.jpg
Evan