procedure TForm1.Frame1Click(Sender: TObject);
{ Combine two layers into one. layer 0 contains the picture, layer 1 contains the frame.  The area
  inside the frame image must be transparent or have an alpha of 0.  The frameheight is estimated
  from on the the location of the first pixel in layer 1 that has an alpha value of 0.  The layers
  are repositioned (PosX and PosY) to fit the frame in layer 1 to the picture in layer 0.  This may
  not perform correctly with some frame bitmaps because the estimate of the frame height is just
  that... an estimate, however my testing with a number of picture sizes and frames produces good
  results.  }
var
  i: integer;
  iAlpha: integer;
  iFrameHeight: integer;
begin
  { Get the first pixel with alpha = 0, then estimate the iFrameHeight }
  for i := 0 to ImageEnView1.Layers[1].Bitmap.Height - 1 do
  begin
     iAlpha := ImageEnView1.Layers[1].Bitmap.Alpha[ImageEnView1.Layers[1].Bitmap.Width div 2, i];
     if iAlpha = 0 then
     begin
        iFrameHeight := i*10;
        break;
     end
     else
       iFrameHeight := 100;
  end;
  { Photo is in layer 0, so resize layer 0 to provide room for the frame in layer 1 }
  ImageEnView1.Layers[0].PosX := -iFrameHeight;
  ImageEnView1.Layers[0].PosY := -iFrameHeight;
  ImageEnView1.Layers[0].Width := ImageEnView1.Layers[0].Bitmap.Width;
  ImageEnView1.Layers[0].Height := ImageEnView1.Layers[0].Bitmap.Height;
  { Frame is in Layer 1 so stretch the layer to fit the photo in layer 0 }
  ImageEnView1.Layers[1].PosX := -iFrameHeight * 2;
  ImageEnView1.Layers[1].PosY := -iFrameHeight * 2;
  ImageEnView1.Layers[1].Width := ImageEnView1.Layers[0].Bitmap.Width + iFrameHeight * 2;
  ImageEnView1.Layers[1].Height := ImageEnView1.Layers[0].Bitmap.Height + iFrameHeight * 2;
  { Combine the layers }
  ImageEnView1.LayersMergeAll;
  ImageEnView1.Fit;
end;

ImageEnView1.LayersInsert(0);
ImageEnView1.Layers[0].Width := ImageEnView1.Layers[2].Width;
ImageEnView1.Layers[0].Height := ImageEnView1.Layers[2].Height;
ImageEnView1.Layers[0].Visible := False;
ImageEnView1.Layers[1].Cropped := True;
ImageEnView1.LayersMergeAll;