You would need to create a .jpg from you .psd (or scan a printout from photo shop into your computer) and then use that in digitizing software. Search in the box on the site to find many strings around digitizing software.

Last night I had found AVS4YOU that converts to .jpg or emb.

Sorry Denise, it is a whole different language format. Even Adobe doesn't have that magic. I wish they did because it would be amazing, but probably very difficult. You must use a complete different type of software, called digitizing software, and they are all pretty expensive. If you do Photoshop Elements, you will really enjoy learning digitizing. There are experts on here who can point you in the right direction toward getting started on that!