Layer Effects are supported a little differently in Photoshop. As I already said, I actually prefer the way they work in ImageReady, so thats where I do most of my Layer Effects work. Still, sometimes you find yourself making type in Photoshop and its great that this same feature is there as well.
1. You should be in ImageReady, but you are about to switch to Photoshop. Click on the Jump To button at the bottom of the ImageReady toolbar. This should pop you over to Photoshop and open the same button.psd file there.
Notice that there is no Layer Effect icon at the bottom of the Layers palette in Photoshop. The circles with the f shape in them are visible on each layer they were used on, but without a twirl-down arrow or a name of the effect showing. The appearance is different, but the Layer Effects are still visible and working here.
2. In the Layers palette, double-click on the Layer Effect icon in the ellipse shape layer to bring up the Effects dialog box. Change a couple of settings and you will see the artwork change. Make sure that Preview is checked. Do not click OK. You can add multiple Layer Effects in Photoshop as well. Click on Inner Shadow and youll access a pop-up menu.
3. Choose Color Fill and check on Apply. Make sure Preview is checked. Click inside the red color swatch to pick another color. Bingo, the layer changes color! Click OK.
If you draw on this layer, the Layer Effect will apply to your brush strokes. This is true in ImageReady as well. In order to draw on the ellipse shape layer, however, you will have to uncheck Preserve Transparency. As I mentioned earlier, I use Preserve Transparency all the time, but it wont let you edit the layer in its transparent areas. Being able to turn Preserve Transparency on and off when you need to is part of its power.
4. Click on the Paintbrush tool in the Photoshop toolbar (the shortcut is the letter B on your keyboard) and grab yourself a brush from the Brushes palette (Window > Show Brushes). Paint a stroke on the artwork.
Whoa! Its the same color with the same effect. Told you so!
5. Select the background layer and choose Layer > Effects > Inner Shadow... . I changed the settings so this effect shows up well on the background layer. Change your settings to match mine or choose your own settings. When youre finished, click OK.
6. You can copy and paste Layer Effects in Photoshop, just like you could in ImageReady. You can even selectively turn them on and off if you have multiple effects by checking or unchecking the Apply box inside the Effects dialog box. Deleting Layer Effects is a little different, however. Make sure the background layer is still selected and choose Layer > Effects > Clear Effects.
7. Save your work and click on the Jump To button again to return to ImageReady.