Open Photoship and press "ctrl+o" to access the "Open File" dialog. Select the image and press "Open."
Press "c" to access the Crop Tool. Click and drag it around the picture until you have selected the area of the image that you wish to keep. Right-click on the image and select "Crop" to remove everything else.
Press "ctrl+alt+c" to bring up the canvas dialog box. Select "pixels" from the drop-down menu. Edit the numbers in the "Width" and "Height" fields so that they are the same. Whichever number is higher, make it match the smaller. Press "OK" to accept the changes. This will fine-tune the cropping of the image to make it a square. If you do not want the image to be a square, you can skip this step.
Press "s" to bring up your stamp tool. This will allow you to cover up any blemishes on the album cover. Move your cursor over the area you wish to sample. Hold "alt" and left-click. Release alt and move the cursor over any blemished areas. Left-click to apply the texture from the sampled area to cover the blemish. Try to match the area as best as you are able. At any time you can right-click to change the size and hardness of the stamp.
Press "ctrl+alt+i" to bring up the image size dialog. Enter your desired dimensions in the "Height" and "Width" fields. Do not make these numbers much higher; enlarging an image too much will make it blurry. Press "OK" to accept your changes.
Press "ctrl+shift+s" to bring up the "Save As" dialog. Enter a file name for the album cover and navigate to the location on your computer where you want to store the image. Click "Save." Press "ctrl+w" to close the image, or quit Photoshop.