This is a basic step by step for making the most of your felt.
Made for Photoshop users, it may work for Elements and PSP if you know about paths & stroking.
I have used this felt for the tutorial
I also made a simple action to do the work for you right up until the application of the felt.
The brush is also included as an ABR file, download it HERE
I can’t guarantee which programs it will work in. Please read the instructions included.
It should be compatible for Photoshop 6 and higher as well as Elements.
For best results use the warp tool or slightly skew the circle so it is slightly uneven.
You can open paths in PS with window—>paths
Make a new path with button 1, which will be the outline of your shape. Then make a work path with button 2.
Download brush HERE or make your own. You want it to give a fuzzy look. You can use this brush for commercial use too.
Making sure you have your shape layer selected and your brush selecetd, go back to paths and hit stroke path with brush. Button 1. Then hit the trash icon to delete the path before continuing.
It should now look like this:
Apply your felt STYLE of clip your FELT to the shape with the new fuzzy edges.
Installation & using styles tutorial is HERE
Add a shadow for more realism. Either double click the thumbnail in the layers palette and do it OR make a new layer. Merge it with the felt element. Then do your shadows. For best results make the colour of the shadow a darker version of whatever colour is underneath.
The shadows used here are all different colours. The button shadow is a dark yellow. The yellow felt shadow is a dark orange etc…
This tutorial was made using Photoshop CS3.