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Adding steps to watermark action - follow up to a previous question

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This is in regard to Jodie's "Watermark action drop shadow" question from Feb. 17th.  I love the looks of her drop shadow effect but am having trouble figuring out how to get that look.  I'm completely stumped and its driving me crazy.  Is it still going to be done using the canvas size step to extend the border or do I need to add this in somewhere else to get the shadow?  Sorry if I'm talking in circles.  :{

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I guess maybe thats part of my question.  I know how to add a drop shadow in Photoshop with using different layers, but since we are adding a border to an image by way of canvas size, I wasn't really sure where or how to add the drop shadow effect. :)

Edited by swilliams
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I know I'm probably making this a lot harder than it has to be...obviously. 

Do I just need to go about adding a white layer with enough space to act as my border, make the shadow on the layer with the photo, then flatten and go on about the action from there?

I didn't know if I could add the shadow as part of the action or if that needed to be done before hand. 

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OMG, I finally figured it out.  I was totally over thinking it and trying to add in extra steps or something.  I'm not that familiar with the Smart Object step in PS.  Now, with this, I understand its purpose a lot more. :)

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