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Gonna explain the way it needs to be done and how to do it.
Softwares used.
1. Photoshop Cs3
2. C4D a.k.a Cinema 4D
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:: Guide ::
Ending result should be something like this.
Tried to make it as simple as I could. Post in your doubts here. and I shall try to reply to them. but I think experimenting wid different utils in photoshop may turn out the result to be better than mine

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4 steps at a time.. so it goes slow and easy wid u guys.