Make a new layer named 'polaroid' and Set your foreground to White. Make the selection the shape of a polaroid and Fill it with white by Holding ALT and hit DELETE.
Tutorial Step 2
On Polaroid Layer Goto Layer>Layer Style>Blending Options
Use These Settings for (Drop Shadow)
Use These Settings for (Inner Glow)
Use These Settings for (Gradient Overlay)
Use These Settings for (Stroke)
Tutorial Step 3
Paste a picture into Photoshop and position it over the polaroid, Then using the Rectangular Selection Tool crop the picture to fit if needed (Edit>Crop)
Tutorial Step 4
Merge the picture layer with the 'Polaroid' Layer So the polaroid is easy to manipulate.
-Tips-
Use Free Transorm to slightly tilt the picture
You can also lay multiple polaroids ontop of each other