6. Open the paper.jpg image
Set your background color to the paper.jpg with settings as below.

Go to your base layer and select the left wall using the magic wand.
Go to Selections>Modify>Expand and expand the selection by 2. Add a layer and flood fill the selected area on the new layer with your wallpaper pattern.

Deselect.
Go to your layer palette and pull the opacity slider on the wallpaper layer back to about 40.

7. Click on your deformation tool and, while holding your control key down, pull down on the lower left node until the angle of your pattern matches the angle of the black lines on the wall.
You'll need to deform the width just a tiny bit to cover half of the black line in the center.
It's okay to be over the black lines as long as the angle is correct.

Double click on your image to accept the deformation.
Go to Effects>Sharpen>Sharpen. Go back to the base layer and select the same wall area you used in the previous step. Expand the selection by 2 again.
Invert your selection.
Go to the wallpaper layer and hit the delete key.
Go back to your layer palette and reset the opacity to 100. Deselect.

8. Duplicate your wallpaper layer.
Mirror the duplicate layer.
If you are happy with the way your wallpaper meets in the center merge just those two layers.

If you can still see any of the black lines make sure your wallpaper layer is active.
Click on the deformation tool again and adjust the height of the wallpaper to cover the black lines.
If, by any chance, your line where the ceiling meets the wall is not smooth correct it by adding a white line using the draw tool.
If you want to add texture to your ceiling now is the time to do it.
Sharpen if needed.

Now you have a basic corner.
The reason I used this particular wallpaper is that it has both horizontal and vertical lines in the pattern.
Anything you add to the room must follow the angles of those horizontal lines.

Below is an image showing simple representative placement of things that might be added to a room. As you can see anything near the bottom follows the angle bottom line and anything near the top follows the angle of the top line. As you get toward the horizontal center things flatten out.

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