Minimize this window so you can select it from the Windows menu later if needed. The only windows open should now be your new petal and the lace heart we made above. Go to the lace.psp image now. Create a layer between the two layers you already have and select it as the current one. Best save the image as Temp.psp now, just in case.
Background Now comes the most tedius part.
Take your time with this and have patience. If your design isn't symetrical, you'll have to lace the outer edge of the entire design by hand. While lacing, save your image frequently in case something gets goofed up. Copy and paste in your petals. Use the Deformation Tool to rotate the petals if needed.