Ok first off, I am going to introduce the project! Here' an example of what we will be making...


Just look at the dark grey plastic with the light outside edges...

Now, here are the colors we will be using. Instead of typing the color later on I will just say the name from here:

Color A: #404040 (Dark Grey)
Color B: #FFFFFF (White)

Now, put those two into the color boxes...

Now, create a new document about 500x500, and grab the rounded rectangle, pretty large, color A.


Now, hold CTRL and click on the PICTURE of Layer 1. A marquee should now be around the rectangle. Make a new layer and grab color B and start stroking around the outside, but NOT TOO MUCH! Sloppy actually looks better in this technique...


Now, go to Filter>Gaussian Blur and mess witht he settings until you get something like this:



Now for the last step, just mess around with the opacity of the shading.


This technique can be combined with many others. Also, try using black instead of white ;)