I'm new here and I'm taking a class on Director. Unfortunately, my teacher does
not know how to do much himself which is leaving me to come here and seek
advice. Please forgive me in advance for any stupid questions and the like
since I have not learned much.

I am creating a video game similar to
http://www.youtube.com/watch?v=44rceRqY8_k but with a small amount of moving
objects instead of stationary objects. I am not trying to make an exact
recreation but at least something that is playable and fun that can be made in
Di.

I am just taking it one step at a time so my question is, am I able to create
a border around http://img184.imageshack.us/img184/7296/borderhe4.png portion
of my picture. The black border is also part of the same PNG. Is it possible to
create a border in the code so nothing passes that section or does my picture
have to be separate from the black border?

I hope this question makes enough sense. Thank you for any help. ^_^

Yes, you can set a constraint for any sprite on the stage. You might benefit a
great deal from reading "Advanced Lingo for Games" by Gary Rosenzweig. Don't be
afraid of the Advanced part. It's a very good step by step book on building
games with Director. It will explain a lot of the basics that you'll need to
know.

Code wise you could inflate the rect of the sprite to get the rect of the boundary;

border_rect = sprite( "PNG Sprite" ).rect.inflate( -50, 0 )