Rounded Corners III: Clipping Mask

After researching a few different methods to create rounded corners, this is my personal favorite for ease and flexibility.
1) Do all prepping of photo before hand (crop, shrink, etc). Image resides on Background layer.
2) Duplicate a copy of the Background Layer (Layer1).
3) Between Background Layer and the duplicate (Layer1), create a new layer (Layer2) and fill with background color.
4) Use Tools--> Rounded Rectangle Tool (Or Text or Freeform...etc) to create shape choice
5) Go to the top photo layer (Layer1) and select Layer-->Clipping Mask

http://www.happywebdiva.com/2008/02/03/how-to-make-rounded-corners-in-photoshop/