I've used PSP9 for this tutorial, however you should be able to create this tag in all versions.
I am assuming you have some knowledge of PSP.
A tube or close up of choice. I've used a tube by Gennadiy Koufay (http://www.cdoestore.com), available for purchase at CDO (http://www.cdoestore.com).
Please do not use the same tube without the appropriate license.
Fonts of choice. I've used Cooper Black as my bold font and AL Sandra for my scripty font.
Eye Candy 5 Impact - Gradient Glow
Penta.com - Jeans
1. Open your tube. With your selection tool, select an interesting area on your tube - it could have an interesting pattern or lots of colours. See my screenshot below for the area I selected:
2. Edit - Copy. Edit - Paste - Paste As New Image.
This should create a small image with just the area you selected from your tube.
Effects - Image Effects - Seamless Tiling with the following settings:
3. Open a new image 600 x 600 pixels. Set your foreground to black or a dark colour from your tube.
Set your background to pattern and select the Seamless Tile you created earlier. Now set it to Null (we'll be using this later).
Select your preset shape tool and set it to Ellipse, with the following settings:
Draw a circle on your canvas. Objects - Align - Centre in Canvas. Convert to Raster.
4. Select your Magic Wand, and with your circle layer active, click inside the circle.
Selections - Modify - Expand by 2.
Add a new Raster layer.
Flood fill your new layer with your Seamless Tile.
Selections - Select None.
5. With your flood filled layer active, Layers - Arrange - Move Down. This should move it underneath the circle you drew.
Duplicate the flood filled layer. On the original layer, apply Adjust - Blur - Gaussian Blur with the following settings:
6. Still on the same layer, apply Penta.com - Jeans with the following settings:
If you like, you could duplicate this layer to make it stand out more - I didn't in my example.
7. Select your Preset Shape tool again and set it to Rectangle. Swap your materials, so that you have your tile as your foreground and your dark colour as your background. This time, set your foreground to Null. See my screenshot below for how to do this:
Draw a rectangle across the bottom of your circle. You want it a little wider than your Jeans layer.
When happy with the size, Objects - Align - Horz. Centre in Canvas.
Convert to Raster.
If there is any of your Jeans layer hanging below your rectangle, erase this.
8. With your Rectangle layer active, apply Eye Candy 5 Impact - Gradient Glow with the following settings:
Change the colour to suit your tag.
9. Change your materials around again, so that your tile is your background again.
Select your text tool, and set your foreground to null.
Type out an appropriate word to suit your tag using your bold font.
Position it in the centre of your rectangle and convert to Raster.
10. Apply the same Gradient Glow to your word that you used for your rectangle.
I used a lighter colour from my tube this time.
Apply a drop shadow with the settings 0, 0, 100, 10.
11. Paste your tube as a new layer and move it below your Rectangle layer.
Move it into an appropriate position, resizing if necessary.
Apply a drop shadow of choice.
If any of the tube is sticking out below your rectangle, erase this.
12. Crop your tag and resize it if necessary.
13. Add your name in your scripty font, copyright and licence number, if necessary.
And you're done :)