4: Recessed Buttons Effect
This is a nice effect that is simple to create. As you can see, the button appears to be recessed into the background giving it a nice 3D look.
1. Load Photoshop and open your image that contains the background.
2. Go to (Layers, New, Layer) to add a new layer. Now select the Elliptical Marquee Tool ('Shift' and 'M') and draw a circle in the middle of your document. To draw a perfect circle, hold 'Shift' as you move your cursor. Now choose a color as your foreground and then fill in your circle (instructions for this step available in tutorial #1).
3. Go to Layer, Layer Style, Bevel and Emboss. When the window comes up, choose Pillow Emboss from the Style Dropdown box. Tweak the settings as you see fit then click OK and you're done.