First, I highly recommend the upgrade to M2. Much more stable and some excellent new features. But if $$$ are tight….
1. Create a new element that is an oval the size of the vignette area.
2. Fill it with a radial gradient that’s white in the center and black at the edge. Make sure that the transition doesn’t start until it’s pretty close to the outer edge.
3. Select the object that you want to vignette and duplicate it.
4. Select the lower copy of the object you just duplicated and darken it (or filter it as the less important “outside shadow” area).
5. Select the unaffected copy directly above and and add an Image Mask from the Object menu.
6. Drag the gradient oval object and drop it onto the Image Mask object to use it as the opacity map.
7. Adjust the size of the original gradient oval object until it is the way you want it to look.
8. Gets lot of money from the delighted client.
Jim Kanter,
Digital Film Institute
http://www.dfilminst.com