It's kinda Easy to make that with photoshop CS2, Follow me :

First Open Photoshop and Open desired image.



Now Select Elliptical Marquee Tool and draw ellipse in such a way to accommodate the main portion of the image.



Then Click Channel Palette or select Channel Palette Tab.

And Create New Channel. The Image will become black and the selection will remain on the black background

Now Go to : Select > Feather > Feather Radius (16 pixels)

And Fill White color in the selection by pressing Alt + Del. Deselect the selection with Ctrl + D



Now go to : Filter > Noise > Add Noise

Amount : 34
Distribution : Uniform
Monochromatic



Now To : Filter > Brush Strokes> Angled Strokes

Direction Balance : 70
Stroke Length : 15
Sharpness : 3



Select RGB Channel in the channel palette. Click Layer Tab. Select the image layer.
Select > Load Selection
Select Alpha 1
Select > Inverse



To finish : Fill the Image with white color by pressing Alt + Del



Enjoy ;)