Start by opening your Temp 79 

Now go to your layers pallet & delete the following layers :

Credit Layer

Background Layer

Now in your layers pallet - click on your Raster 11 layer - now activate your Magic Wand tool - then click inside the red area on your canvas for Raster 11. 

Then go to Selections - click Modify - then click Contract - now set it to 1 & click Ok.

Now open P5 - Copy & paste it as a new layer onto your canvas - then go to Selections - click Invert - then on your keyboard press your Delete key 1 time. Now go back to Selections & click Select None.

Now back in your Layers Pallet - then go to Effects - click 3D Effects - then click Drop Shadow

**Please note the settings I have set below are the exact settings that I will use through out this tutorial**You are welcome to use the same settings, or play around with your settings to get an effect that you like**

Now click Ok.

Now go back to your layers pallet - click on your Raster 5 layer - then go to Selections - click Select All - then click Selections again & click Float - then go to Selections again & click Defloat -

Now open P1 - Copy & paste it as a new layer onto your canvas - then go to Selections - click Invert - then on your keyboard press your Delete key 1 time.

Go back to Selections & click Select None.

Now go back to your layers pallet - click on your Raster 6 layer - then go to Effects - 3D Effects - then click Drop Shadow. (Remember , apply the exact same settings yo used above & click Ok)

Now in your layers pallet - click on Raster 12 - Effects - 3D Effects - Drop Shadow (same settings as before, click Ok)

Back in your layers pallet - click on Raster 13 - activate your Magic Wand tool - click inside the red area for Raster 13 - then go to Selections - click Modify - then click Contract - this time set to 2 & click Ok.

Now open P2 - Copy & paste it as a new layer onto your canvas - then go to Selections - click Invert - then on your keyboard press your Delete key 1 time. Now go back to Selections - click Select None.

Go to your layers pallet - click on your Original Raster 13 layer - then go to Effects - 3D Effects - Drop Shadow (same settings & click Ok)

Go back to your Layers Pallet - click on your Raster 7 layer - go to Selections - click Select All - then back to Selections - click Float - back to Selections - click Defloat -

Now open P8 - Copy & paste it as a new layer onto your canvas -then go back to Selections - click Invert - then on your keyboard press your Delete key 1 time. Then go back to Selections - click Select None.

Now back in your layers pallet - DELETE your ORIGINAL Raster 7 layer.

Now in your layers pallet - click on your Raster 8 layer - Effects - 3D Effects - Drop Shadow (same settings as before, click Ok)

Now in your layers pallet - click on Raster 16 layer - activate your Magic Wand tool - click inside the red area for your Raster 16, then go to Selections - click Modify - then click Contract - set to 2 & click Ok.

Now open P5 - Copy & paste it as a new layer onto your canvas - then go back to Selections - click Invert - then on your keyboard press your Delete key 1 time. Now go back to Selections & click Select None.

Now in your layers pallet - click on your original Raster 16 layer - go to Effects - 3D Effects - Drop Shadow (Use same settings as before, click Ok)

Now in your layers pallet - click on your Raster 1 layer - go to Selections - click Select All - then back to Selections - click Float - then back to Selections - click Defloat -

Now open P4 - Copy & paste it as a new layer onto your canvas - then go back to Selections - click Invert - then on your keyboard - press your Delete key 1 time. Now go back to Selections - click Select None.

Now in your layers pallet - click on your Raster 2 layer - Effects - 3D Effects - Drop Shadow (same settings as before, click Ok)

Now open your Tube of choice - Copy & paste it as a new layer onto your canvas. Then re-size it to about 85%. Using your Move Tool - position your tube so that it is over the big "O" on your template. Now go to your layers pallet - right click on your Tube layer - then click Duplicate. Now move your duplicated Tube layer down so that it is under your P4 & Raster 1 layers.

Now still in your layers pallet - click on your top (original) tube layer - then activate your Eraser Tool - now erase any part of your Tube that is over lapping the bottom of your "O".

You may also have to click on your duplicated (bottom) tube layer & erase the same parts that you erased on your top tube.

Now back in your layers pallet - make sure you are on your top (original) tube layer - now right click on that layer - then click Duplicate. Now go to Adjust - click Blur - then click Gaussian Blur - set to 5 & click Ok.

Now back in your layers pallet - at the top - change the Blend Mode from Normal to Overlay.

Now in your layers pallet - click on your duplicated (bottom) tube layer (the first one you duplicated & moved down in your layers pallet) Go to Effects - 3D Effects - Drop Shadow. (Use the same settings & click Ok)

Now in your layers pallet - click on your Raster 10 layer - Effects - 3D Effects - Drop Shadow (same settings, click Ok)

Now follow that same step (adding a drop shadow) to the following layers :

Raster 9

Raster 2

Raster 15

Now back in your layers pallet - click on your Raster 3 layer - go to Effects - click Plugins - then click Eye Candy 5 Impact -then click Glass.

**The settings below are my own preference, you may use them if you would like, or play around with the settings to get your own effect.**

Then click Ok.

Now go to Effects - 3D Effects - Drop Shadow (use same settings, click Ok)

Now click on Raster 4 - Effects - 3D Effects - Drop Shadow (Same settings, click Ok)

Now open your tube of choice again - Copy & paste it as a new layer onto your canvas - then re-size it to 85%. Now go to Image - click Flip Horizontal (on other versions of psp you might have to click Mirror instead)

Now using your Move Tool - position your tube to the lower left (see my tag for reference if needed)

Be sure to line up the bottom of your tube with the glitter edge.

Now in your layers pallet - move your tube layer down so it is below your Raster layers 14, 15,3 & 4.

Now right click on your tube layer - click Duplicate - then go to Adjust - click Blur - then click Gaussian Blur - set to 5 & click Ok.

Now in your layers pallet - at the top - change your Blend Mode from Normal to Overlay.

Then in your layers pallet - click on your original tube layer - Go to Effects - 3D Effects - Drop Shadow (Same setttings, click Ok)

Now lets add some Elements :

Open your Snowman element - Copy & paste it as a new layer onto your canvas - then re-size it to 40%. Using your Move tool - position your Snowman element to your liking.

Now go to Adjust - click Sharpness - then click Sharpen

*You will want to sharpen each element that you re-size*

Now go to Effects - 3D Effects - Drop Shadow (same settings, click Ok)

Now open your Stocking element - Copy & paste it as a new layer onto your canvas - then re-size it to 40%. Using your Move Tool - position your Stocking element to your liking.

Adjust - Sharpness - Sharpen

Effects - 3D Effects - Drop Shadow

Then go to your layers pallet -right click on your Stocking layer - then click Duplicate. Now using your Move tool to position your duplicated Stocking element to your liking.

Now open your Sign2 element - Copy & paste it as a new layer onto your canvas - then re-size it to 65%. Using your Move Tool - position your Sign2 element to your liking.

Adjust - Sharpness - Sharpen

Effects - 3D Effects - Drop Shadow

Open your Bauble5 element - Copy & paste it as a new layer onto your canvas - then re-size it to 45%. Using your move tool - position your Bauble5 element to your liking.

Adjust - Sharpness - Sharpen

Effects - 3D Effects - Drop Shadow

Now go to your layers pallet - right click on your Bauble5 layer - then click Duplicate. Now use your Move Tool to position your Duplicated Bauble5 element. You might want to duplicate this element a few more times & position them around your tag. That is totally up to your preference.

**Please note - you do not need to Sharpen or apply a Drop Shadow to elements that you have duplicated, as long as you applied those effects prior to duplicating the element**

Now open your Bells element - Copy & Paste it as a new layer onto your canvas - then re-size it to 45%. Using your move tool - position your Bells element to your liking.

Adjust - Sharpness - Sharpen

Effects - 3D Effects - Drop Shadow

Now go to your layers pallet - right click on your Bells layer - then click Duplicate. Now use your Move Tool - position your duplicated Bells element to your liking as well.

Open your Bell element - Copy & Paste it as a new layer onto your canvas - then re-size it to 30%. Now using your Move Tool - position your Bell element to your liking.

Adjust - Sharpness - Sharpen

Effects - 3D Effects - Drop Shadow (same settings, click Ok)

Now go to your layers pallet - right click on your Bell layer - then click Duplicate. Now using your Move Tool position your duplicated Bell element to your liking.

Open your Tag element - Copy & Paste it as a new layer onto your canvas - then re-size it to 65%. Using your Move Tool - position your Tag element to your liking.

Adjust - Sharpness - Sharpen

Effects - 3D Effects - Drop Shadow (same settings, click Ok)

Open your Mouse2 element - Copy & Paste it as a new layer onto your canvas - then re-size it to 50%. Using your move tool position your Mouse2 element to your liking.

Adjust - Sharpness - Sharpen

Effects - 3D Effects - Drop Shadow (same settings, click Ok)

Now go to your layers pallet -right click on your Mouse2 layer - then click Duplicate. Now go to Image & click Flip Horizontal (or Mirror, depending on what your version has) then using your Move Tool - position your Duplicated Mouse 2 element to your liking.

Open your Reindeer element - Copy & paste it as a new layer onto your canvas - then re-size it to 50%. Now using your Move Tool - position your Reindeer element to your liking.

Adjust - Sharpness - Sharpen

Effects - 3D Effects - Drop Shadow

Now go to your layers pallet - right click on your Reindeer layer - then click Duplicate. Now using your Move Tool - position your duplicated Reindeer element to your liking.

Open your Ribbon 3 element - Copy & paste it as a new layer onto your canvas. Use your Move Tool to position to your liking.

Then I went to my layers pallet - I moved the Ribbon 3 layer down so that it was under a few of the other layers - but yet on top of others. Its your choice how you wish to position your Ribbon3.

Adjust -Sharpness - Sharpen

Effects - 3D Effects - Drop Shadow

Open your Beads element - Copy & Paste it as a new layer onto your canvas - then using your move tool - position your beads to the lower part of your template. 

Adjust - Sharpness - Sharpen

Effects - 3D Effects - Drop Shadow (same settings, click Ok)

Now go to your layers pallet - right click on your Beads layer - then click Duplicate. Now go to Image - click Flip Vertical. This will now make it so you can use your Move Tool & position your duplicated Beads element to the top of your template.

Again you will want to go to your layers pallet - move both of your Beads layers down under some of your elements & tube layers.

Open your Candy Cane element - Copy & paste it as a new layer onto your canvas - now re-size it to 30%. Using your move tool - position your Candy Cane element to your liking.

Adjust - Sharpness - Sharpen

Effects - 3D Effects - Drop Shadow (Same settings ,click Ok)

Now go to your layers pallet - right click on your Candy Cane layer - then click Duplicate. Now using your Move Tool & position your duplicated Candy Cane element to your liking. Now duplicate this element a couple more times, and position each to your liking.

Now open your Lights element - Copy & Paste it as a new layer onto your canvas - then re-size it to 75%. Go to Image - click Free Rotate - set to Right 10.00 & click Ok

Now using your Move Tool - position your Lights element to the upper Red bar that is towards the top of your template. (See my tag for reference if needed)

Adjust - Sharpness - Sharpen

Effects - 3D Effects - Drop Shadow

Now copy & paste your Lights element onto your canvas again - then re-size it to 75%. Go to Image - click Free Rotate - this time set it to Left 10.00 & click Ok. Now using your move tool - position this Light element to the lower Black bar towards the bottom of your template.

Adjust - Sharpness - Sharpen

Effects - 3D Effects - Drop Shadow (same settings, click Ok)

Now open your Ribbon element - Copy & Paste it as a new layer onto your canvas - then using your Move Tool - position your Ribbon element to your liking.

Adjust - Sharpness - Sharpen

Effects - 3D Effects - Drop Shadow (Same settings as before, click Ok)

Now go to your layers pallet - right click on your Ribbon element - then click Duplicate. Now go to Image - click Flip Horizontal. Using your Move Tool - position your duplicated Ribbon to the opposite side of your original Ribbon element.

Now open your Snow element - Copy & paste it as a new layer onto your canvas - then position it to your liking.

Go to your layers pallet - move your Snow layer down so that it is below ALL of your TUBE layers.

Adjust - Sharpness - Sharpen

*Do not apply a drop shadow to this element*

Now add your name & copyright/credit information.

For my name I used the following settings :

Once you apply & position your name - go to your layers pallet - right click on your Name layer - then click Convert To Raster Layer. Then go to Effects - click Plugins - then click Eye Candy 4000 - then click Gradient Glow.

**The settings below are my own personal preference, you are welcome to use the same settings, or your own**

(Before you click ok, be sure to click on the color tab & set your colors to your liking)

Then click on the Color Tab :

Then click Ok.

Now go to Effects - 3D Effects - Drop Shadow (Same settings as before, click Ok)

For my copyright/credit information I used the following :

Now once you are happy with the position of all of your papers - elements - name - copyright info, go to your layers pallet - right click on any layer - then click Merge - then click Merge Visible.

Now you may or may not need or want to re-size your Merged tag. If you re-size the size will depend on where you will be using your tag & that forums guidelines on what sizes are allowed.

Now once your layers are merged & your tag is re-sized, go to Adjust - Sharpness - Sharpen.

Now all that is left is to save it as a PNG file & you have completed this tutorial!! ♥