select the outline from the paths palette on command/click, drag the image in to the work file by using move tool, you can use select the tool by pressing tab and V.
Layering technique - you can easily edit the design you want. Create picture that best represent your book. Put your name as the author and title (Centered-Highlighted).
Designing cover for a book can be done easily using paint. In Adobe photoshop create a new document and then select the image size you want. Then select Paint Bucket Tool and fill the page with your desired color.
There are plenty of good resources on the internet such as good-tutorials, etc, describing in detail how to design different kinds of book covers in Photoshop.
