This WORKS for JAILBROKEN IPHONE 4/4S/5/5S/5C RUNNING IOS 6 TO 7
Download and then press 'Open in ifile'.
Press Unarchiver.
Now, move the folder to
var/mobile/Library/iWidgets.
Now go to your
var/mobile/Media/DCIM (that's your camera roll location)
to find the picture u wanna use.
Copy the photo you wanna use,and then go back to
var/mobile/Library/iWidgets and then into the frame folder.
Rename your picture to Photo.png (case sensitive)
Long press on your homescreen to add the widget frame.