Photoshop Effects
Flattening An Image (into 1 layer)
 Choose Layer > Flatten Image
  or
Choose Flatten Image from the Layers palette menu.
Distorting An Image
1. Open Image 
2. Select Area (the whole image in this case) with    
3. Click Edit > Free Transform
4. Right Click somewhere inside of the image > Choose Perspective
5. Stretch Corners outward on bottom to Distort Image 
6.Click    
7.Click Apply
Changing "Levels" of an Image with A Mask  
  Using a Linear Gradient in this Example (Making top half lighter)
1. Press "Q" to enter Quick Mask mode
2. Click  , then hit "D" (for default colors)
3. Click on the bottom of the Image and drag to the top of the Image
4. Press "Q"  (This will highlight the top part of the Image)

Now to Lighten the top of the Image and Reduce Contrast
5. Image > Adjust > Levels
6. Move the Black Slider on the Output Levels bar to the right
7. Click Ok
8. Click Some Button on Main Toolbar to Apply Changes
Adding Text (Type Button)

1. Click   (or hit "T")
2. Click on Image where you want the text to appear.
3. Choose the Font, Style, Size, Color, etc. settings
4. Type your text into text box at the bottom
5. The Text can now be moved in the Image while the Text box is still open.
6. Click Ok
    A New Layer will be Added for the Text

Adding Drop Shadow Layer  (behind the Text)
1. Highlight Text Layer
2. Right Click in blue area of Text Layer 
3. Choose Effects (Window will pop up)
4. Choose Drop Shadow from top dialog box.
5. The Shadow now appears and can be clicked on and moved
6. Adjust Blur and other options. Intensity makes the shadow darker.
7. Click Box beside the Mode dialog box to pick the Color of the shadow
    Note: Color can be selected using the Color Picker window options or by
    simply clicking on a color in the Image itself.
 Making the Shadow Into A Layer
1. Highlight Text Layer
2. Right Click on "f" symbol 
3. Choose Create Layer (This will create new layer for the Shadow)
Distorting The Shadow (flipping downward)
1. Highlight Drop Shadow Layer 
2. Click Edit > Free Transform  (Resizing box now appears around the Shadow)
3. Click top middle resizing square and drag down to the bottom of the whole image.
4. Then Right click somewhere inside the shadow area
5. Choose Perspective
6. Drag outward on bottom corner resizing square (all angles can be adjusted if desired)
    Note: The whole shadow box can be moved also here. (Click and drag to do so)
7. Hit Enter to apply changes
Adding Bevel and Glows to Original Text
  (This can be done now that the shadow is a separate layer)

1. Highlight Type Layer 
2. Click Layer > Effects > Bevel And Emboss (Effects window pops up)
3. Check the Apply box
4. Choose "Inner Bevel" from the Style dialog box
5. Book uses following settings - 90 degrees, 10 pixel depth, Up, 6-pixel blur, 
    Screen, Multiply, 0% Opacity (making it look like we are looking down on the 
    text, instead of right at it)
6. To make the Text Glow, choose Outer Glow from top dialog box.
7. Check the Apply box
8. Adjust Color, Multiply, Blur, Intensity, and Opacity as you like.
9. Click Ok (to apply)
Blending Shadow Into Folds of the Flag  

1. Highlight Shadow Layer  
    
2. Hit Shift-"R" to toggle menu  to Smudge Options 
    
3. Uncheck "Use All Layers" and make Pressure 100%
4. Click Window > Show Brushes > Choose Soft Brush
5. Click and smudge parts of the flag to make it appear
    as if the shadow is flowing with the curves of the flag.
    This is pure skill, the program doesn't magically do this.
6. Click any button on the Main tool bar to stop using Smudge.
Adding a Layer Mask to Lighten bottom of Shadow  

1. Highlight Shadow Layer  
    
2. Click Add Layer Mask button at the bottom of the Layers window.
3. Choose White for foreground and Grey 50% for background
4. Click  , then "G" (to Fade)
5. Click on the top of the shadow and drag to the bottom.
6. Let go of mouse button and the gradient will appear.

The layer will now appear with Mask Thumbnail.