TUTORIAL #2: SHAPES
I was asked by a couple people a while back about how to make pictures into shapes and made them each tutorials on how to do it so now I am putting it up here.
First I took this picture from pretty as a PICTURE and then resized it. After that I used my circular shape tool and placed it over the image (here). Next I rasterized the layer so that I am able to use my magic wand tool on the circle (here). After that go to Select > Inverse (or Shift+Ctrl+I) and press delete. After that just hide or delete the circle layer and viola, you will have an circle styled image of the origial one. You can use this for any of he shapes, including the rounded rectangular one, just use a different shape at the begining instead of the circle. Hope this helps :D