How do you do this effect? - It's like a smooth shadow-like thingie..

there are a few ways to make "buttons" in PS, the ones on the web page could have been made with a PS plugin. you can do it with the round and rectangular marquee tool on 2 layers , fill and merge the 2 layers together, this will make the basic button shape. a small bevel was added to the buttons and a drop shadow was added to the buttons and the text, you can make the drop shadow or us a plugin, same with the bevel. the Photoshop "WOW" book has alot of this stuff in it, buy it, be happy.
the last thing in the web page that was done and the thing that makes it all look so good on the page is,the whole image was put on a white background and then put into the html page that had a white BG too, this way all the shadowing works, not like useing a transparent gif. hope this helps, Jon

Also, a very good tutorial on this can be found at:
http://www.andyart.com/tips/photoshop/ps_39.htm

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Do you have Photoshop 5? If yes then there is a very simple way to do this. PS5 has built in layer effect settings. Try this out.

1.Create a blank layer
2.Create your shape with lasso or other tool
3.Fill the shape with yellow
4.Select "Layers" > "Effects" > "Bevel Emboss"
5.Then also select "Drop Shadow"

The buttons from the URL you gave look like they have been done this way. If you dont have PS5 check out ozones.com/handson

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Thanks for the reply!