web 2.0 type Rounded Rectangular Button in Photoshop

In this tutorial we will learn how to make a web 2.0 type rounded rectangular button in photoshop.
1) Create a new file (File -> New) , and select a size (300 X 300 px) and transparent background.
2) Select “Rectangular Marquee Tool”

3) Now go to Select -> Modify -> Smooth ->  Set to 5 px
Now your selection will have rounded corner.
4) [...]