There are two sets of portrait effects under the Template tab:
Background design, Portrait effects
and
Design, Edge effects - the example you gave is in this one.
I would suggest that you place a few images on the timeline and play around with the different effects, titles and templates - Photostory is a non-destructive editor and will not affect the original images, there is more information on the effects in the manual available under Help in the program.
There are several ways to determine if you have all the components - the easiest method is to run the Installations Manager - Help, Free download - run this and it will show you what is installed or not installed as shown below
Some effects are not downloaded using the above, in the Explorer tab select Downloads - you may have several folders available, open each one to see if there is anything to be downloaded/installed.
Some effects on the fx tab, also show if they are not installed as shown below
I strongly suggest that you watch my tutorials on Getting Started in Movie Edit Pro (3 parts) and basic editing parts 1 and 2. PhotoStory is the same program with just a slightly different look, and a few less tools.