This effect was generated in Filter Forge, a Photoshop plugin that allows you to create your own filters.
This is pattern filter. It's purpose is to simulate exotic carpets and rugs.
Use the 'Import Image' control if you wish to load and use an imported image to make your patterns. I'd suggest using fairly strong colored imports with a lot of one color within. And in this version, only square imported images will work correctly.
This version also includes fringe and controls for same.
The corners are transparent on purpose. If you wish to save them as such, use .tiff or .png formats. .Jpg will not save transparencies.
And thanks to Uberzev for the basic fringe routine.
Craig Kraellin Walters pattern kaleidoscope carpet rug import image fringe corners transparent