Fading the edge of an image to 100% transparency

so far, thanks everybody, i tried the black-shape one but the feathering one doesn't seem to work.

anyway thx!

Here's another way which reveals an odd effect, which might be a bug:

1. Double-click on the background layer to convert it to a normal layer.
2. Select...All (Ctrl+A).
3. Select...Modify...Contract:  60px.
4. Select...Feather:  20px radius.
5. Select...Inverse (Ctrl+Shift+I).
6. Hit the Delete key.

To my eye, the odd effect is that the vignette looks wider at the center.  (Most apparent on the vertical sides.) 

Added:

I guess it's just an optical illusion -- when I dragged out a vertical guideline to measure the fade, it looks the same from top to bottom.

Added (2):

A non-destructive way is to simply use a layer mask.  After step 4:

5.  Click on the layer mask icon in the Layers panel.

Ken

Message was edited by: photodrawken to add comments.

Here's another variation:

1. Double click on the background layer to make the background layer a regular layer.

2. Add a color fill layer (Layer>New Fill Layer>Solid Color) black.

3. Move the fill layer below the photo in the layers panel.

4. Click on photo layer and go to Layer>Create>Clipping Mask

5. Click on the layer mask of the solid fill layer to make the mask active.

6. Selet>All

7. Edit>Stroke>Inside>Black (the Width is how much you want to contract the select from the border)

8. Select>Deselect

9. Filter>Blur>Gaussian Blur (the fade amount)

before:

layers panel:

after:

1. Duplicate the Background layer and turn off the visibility of the Background layer.

2. On the duplicate layer, draw out an area with the Rectangular Marquee tool.

3. Invert and feather the selection. In my example I feathered 40 px, but ithe value will depend on the dimensions of your picture. You will have to experiment.

4. Delete the selection.

Note that you can omit the duplicate layer if you rename the Background layer to anything else and work on that.

File >> New >> Blank File

Make the dimensions slightly bigger than your image, and set resolution e.g. 72 for web and for background color choose transparent.

If your main image is already open you can drag it from the project bin on top of the transparent template and position it or re-size it with the move tool.