2. Use Polygonal lasso tool to select a polygonal area (not of equal width and height) and select inverse from right click and press Delete. Hide the background layer. This should be something that should be the result of this step. Name it Layer 1
4. Now with the selection active, right click and say Layer via copy. Here is how my layer looks like if i make other layers insvible by clicking eye in the checkboxes from layers palette. Name it Layer 2.
5. Hide the background layer(and keep it hidden for rest of the process). Select the Layer 1 and create a new blank layer and paint it white. Move this painted layer below the Layer 1 such that it looks like this. At this moment background layer and Layer 2 are invisible. Name this painted Layer as Layer 3.
7. Now move Layer 2 above Layer 4 and make it visible(At this time only background layer is invisible). This is how my Final output looks like as compared to initial image.
Another recent trial on OOB using PSE8 with above steps :