You need to slice it. I always slice it in 1 header, 1 bg that should be repeated and 1 footer. Then I make 3 divs, 1 for the header, 1 for the background and 1 for the footer. I set the header image as background in the header div with no-repeat. The background div I set the bg image with a repeat-y and in the footer div the footer image with no-repeat. Then I put my content in the background div.
