Gel Button Tutorial

Step 1:
Add a new layer
Step 2:
Set your foreground color to light blue.
Step 3:
Select the rounded rectangle tool in your options bar set the radius to 40 pixels.
Step 4:
In the options bar.
Click on the third icon from the left
(fill pixels)
Step 5:
Draw your shape on your stage.
Step 6:
Apple+click on your shape layer.
Step 7:
Add a new layer.
Step 8:
Go under the select menu, under modify, and choose contract.
Enter 20 pixels. Click Ok.
Step 9:
Press the letter ''d'' then the letter ''x'' to set your foreground to white.
Step 10:
Press Option+Delete.
Step 11:
Press Apple+D.
Step 12:
Go under the Filter menu, under Blur, choose Gausian Blur.
When dialog box appears enter 10.
Click OK.
Step 13:
Select the Move tool.
Step 14:
Using the Arrows on the keyboard, move your blurry wite layer down to the bottom of the pill shape.
Step 15:
Hold down the apple key and click on the pill
layer on your layers palette.
Step 16:
Press Shift+Apple+I to inverse your selection.
Step 17:
Press the delete key.
Step 18:
Press Shift+Apple+I.
Step 19:
Create a new layer.
Step 20: Set your foreground color to a darker blue than your original blue.
Step 21:
Fill your selection your selection by pressing Option+Delete.
Step 22:
Deselect by pressing Apple+D
Step 23:
Hold down the apple key and click once on the blurry layer in your layers palette.
( Be sure not to change layers. You should still be on the dark blue pill layer.)
Step 24:
Press Delete to knock a soft hole out of the blue pill shape.
Step 25:
Select the rectangular marquee tool.
Step 26:
Place your mouse inside the selected area and drag the selection upward a little bit.
Tap the delete key.
Step 27:
Repeat step 26 one or two more times until you're almost to the top of the pill (make sure to stop just short of the top)
Step 28:
Deselect by pressing Apple+D.
Step 29:
Apple+Click on your pill layer to put a selection around it.
Step 30:
Create a new layer.
Step 31:
Go under the select menu, under Modify choose contract.
Enter 20 pixels. Click OK.
Step 32:
Press the letter ''d'' then ''x'' to set your foreground to white.
Step 33:
Select the gradient tool.
In the options bar, Click on the down facing arrow next to the gradient thumbnail.
Choose the second gradient (foreground to transparent)
Step 34:
Drag this gradient from the top of your selection to the bottom.
Step 35:
Deselect.
Step 36:
Select the Move tool.
Using the arrows on the keyboard, move your white gradient layer upward to where it's almost at the top,
but leave a gap of dark blue between your white gradient and the top of the pill. (This creates the highlight area of the pill)
Step 37:
Press Apple+T
Step 38:
Go under the Edit menu, under Transform choose Perspective.
Step 39:;
Grab the left bottom corner, and click and drag outward just a bit to add a perspective effect.
Step 40:
Press Enter to let Photoshop know you're done.
Step 41:
Hide your background layer.
Merge Visible.
Step 42:
Choose drop shadow.
In the dialog box, click the color swatch.
Step 43:
Click on a blue section of your pill shape to colorize the shadow.
Step 44:
Lower the Opacity to 50%, set the angle to 90 degrees, distance to 45, size to 32, turn off use Global Light.
Click OK to complete the effect.