The marching ants should still be around your sign base Go to Selections, modify, contract enter 9 then ok

Add a new layer

Open the image that you want on your sign.Try and make it simple as it will be reduced to fit. You can use either a whole image or select a portion of an image. I used a selected portion for the lighthouse example shown at the end of the tutorial. Pick up a dark color from that image as your foreground color (Hint: make sure your foreground and background colors are locked to keep the color as u swap images)

Flood fill the selection with your color. While still selected click inner bevel, using these settings:

Select none then use the deformation tool to just move the bottom up and the right side in so that the sign sits IN the base

Copy your image then paste as a new layer to the sign. Use the resize then deform tool to make the image fit on the sign on the sign with a good margin around it

Click the retouch tool use on soften mode with these settings

Soften the edges of your image - only use the soften tool once or twice on each edge maximum.