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Circles.
YIKES. Something that could really make you a little crazy.
Here is how I do my corners for a project.
We will
make 2 of these images. One for the top and one that we will
use on the bottom.
Since the
width of our template is 2 inches. Lets make a square that is
2.125 inches wide by 2.125 inches height. I want to add just
a little bit for working.
click on
the preset shape toolbar. 
set your
foreground color to red and your background color to "null"

And
make the following settings on your "tool options Toolbar".

Now
this is the part that gets a little tricky but with a little
practice, you can make the perfect circle.
highlight
your 2 inch by 2 inch square.
Place
your curser in the lower right hand side of the image.
HOLD
DOWN the shift key (the reason why we do this is because the
shape is Elipse and we want a circle) and move your curser to
the upper left hand side of the image. You should see the circle
emerge. Make the circle as close to all 4 sides as you can.
It should look like this.

Once you
are happy with your circle we want to make a copy of it so we
can do the image for the bottom corners. To duplicate the image,
make sure it is highlighted and press the shift "D"
key. You chould have two circles. Minimize one.
We want
to resize the second circle. To do this. Click on Image Resize.
resize the image to these settings.

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