1. Open up Elements in ‘Expert’ mode
2. Choose your image and open it.
3. Now click on the ‘Create New Fill or Adjustment Layer’ icon and choose the option ‘Solid Colour’ from the drop down menu.
4. You will see a new layer created above your ‘Background’ Layer and a ‘white’ Layer Mask linked alongside of it.
5. You will also see the Colour Swatch picker menu, at this point it could be any colour (usually the last one you were using).
6. Either move the circle to the extreme top left, or type the number 255 into each of the R, G & B buttons and click OK. This will change the fill colour to solid white.
7. Next choose the ‘Elliptical’ Marquee tool and pull out a fairly large ellipse making sure you are clicked on the ‘White’ layer mask above your background layer.
8. Again without moving from the Mask Layer go to the ‘Edit’ menu at the top and from the drop down menu choose ‘Fill Selection’
9. At the next drop down menu ensure that ‘Black’ is the colour in the ‘Use’ box, if not click on the small down arrow and select the colour ‘Black’ then click OK.
10. You should now see a neat elliptical hole in the white layer with your image partly visible.
11. Now ‘deselect’ the elliptical marching ants by going to ‘Select’ then choosing ‘Deselect’
12. Next go to ‘Filter’ then choose ‘Blur’ then ‘Gaussian Blur’
13. If you then try clicking at various points along the ‘Radius’ line in the Gaussian Blur dropdown box and waiting a short while, you should see the ‘Vignette’ changing as you do so.
14. To make your final adjustments to the position and the size of the Vignette, stay on the mask layer and choose your ‘Move’ tool from the side menu.
15. As you do so the corners of the image will have the small squares on them and by pulling in any corner box you can change the size of the image to be blurred, you can even rotate the image blur box. Then by moving your mouse pointer to the middle of the image you can hold down a ‘left click’ and move the square to anywhere you like over the background image to get the best position, then tick the box.
16. To get rid of the outer box lines just click on another tool
17. If needed also use the ‘Crop’ tool and the Thirds grid to resize the image for a final crop.
Final Crop
It is worth mentioning that although you must ALWAYS use ‘Black’ for the Fill Selection on the Mask Layer (item 9) but you may use other suitable colours (instead of the white) for the actual Blur colour, have fun.
More elegant than my method 
)
