This is what I’m trying to achieve. It’s possible using CSS only or images must be used ?

Thanks.
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sdleihssirhc’s answer is great if you want to use a fieldset, if you want to keep it to divs play around with this jsfiddle:
http://jsfiddle.net/qT3Hz/1/
Here I’m using position relative and placing it in the center of the other div and moving it up outside the container.
Note: this is using css3 rounded corners, so browsers without css3 support will see square corners.