Help with inserting picture into a template

Hi All,
I have a picture that I made in paint shop pro 8. I am trying to put it on a pre designed template from

http://www.vistaprint.com

to make large magnets with my own picture. Vista Print has these guides for making the pic.

Full Bleed Size (starting document size)
5.59" x 4.33"
142mm x 110mm
1677 x 1300 pixels
* Finished artwork should use the full bleed dimensions for best results.
Document Trim Size (final size after being cut)
5.47" x 4.21"
139mm x 107mm
1642 x 1264 pixels
* Please be sure to keep all text within the safe margin.
Resolution
300 DPI

They are telling me to verify:
1. final document size is correct. (5.59" x 4.33")

2. all background colors and images bleed to the edges of the document at the full bleed dimensions (5.59" x 4.33").

3. all important text and images are within the safe margin (.137” from the edge of your document).

4.resolution is 300 DPI at 100%.

5. all fonts are converted to outlines (Adobe Illustrator and Corel Draw).

I downloaded the template and opened it in Adobe photoshop CS3. I just bought the Adobe photoshop. I would like to know if there is a tutorial for this or if someone can guide me through it for the first time. I am a new new newbi.

I have the template and now don't know what to do with it.

Thanks in advance for any help in this matter.

PM me and I'll help you with this