Create a contact sheet using the Contact Sheet Editor. Once the contact sheet is completed, a new project with the selected images is created. The result can be further modified like any other photopad project.
Opening the Contact Sheet Editor
To open the Contact Sheet Editor dialog, click the Contact Sheet button on the Tools tab.

Contact Sheet Editor dialog reference
Layout Options
Use the Layout Options controls to change how images are arranged.
Modify the Number of Rows according to your desired number of rows.
Modify the Number of Columns according to your desired number of columns.
Use the Spacing slider to increase or decrease the spacing between images.
Toggle the Display File Names checkbox to display the file names of the added images.

Page Size and Orientation
Use the Page Size and Orientation to adjust the overall size of the contact sheet.
Select the size of your contact sheet with the Contact Sheet Size pulldown list. The options listed are in inches by default. Use the Units pulldown list to change the contact sheet size measurements to Centimeters or Pixels.
Click the Landscape button for a horizontally oriented contact sheet, or click the Portrait button for a vertically oriented contact sheet.

Image Options
The Image Options can only be used when you have an image selected.
Use the Assign Image button to replace the currently selected image with a different image.
Use the Remove Image or the delete key to delete the selected image.
Adding Images
Use the Add Images... button to add more images to the contact sheet. If you already have more images than the layout template allows, the additional images won't be added.

Finishing the Contact Sheet Editor dialog
When satisfied with the results, click the Create button. A new PhotoPad project will be created, with a contact sheet layer that contains all images from the Contact Sheet Editor. Click the Edit Contact Sheet button to reopen the Contact Sheet Editor for further editing.