Step 1. Open up a new image approximately 150 x 300, white background.
Step 2. Add a new layer. Set foreground color to color #ab8033 and background to a gold gradient of your choice (a couple come with PSP). Set the style to linear, angle to 180, repeats to 0.
Choose your preset shapes tool and navigate to the "gear 5" shape that comes with PSP. Use the settings in the screenshot.
[Note: PSP 7 users: Your screenshot will look like this:]
Draw an image approximately 100 x 100 (watch the numbers at the bottom of your screen. (Note: screenshot below is reduced - your image will be larger).
Apply an inner bevel (effects>3d effects>inner bevel), using settings in the screenshot.
Step 3. Now duplicate this layer (right click on your layers palette>duplicate). Line up the duplicated layer exactly with the original.
Now choose your deformation tool . Your image will look like this:
Move your cursor over the box on the right (it's indicated by the red box in the screenshot below). You'll see two arrows appear, that seem to be chasing each other. This means that you can use the rotation handle to rotate the image.
Rotate the image just enough that the edges interlock. When it looks the way you want it, just click on your magic wand to deactivate the deformation tool.
Step 4. Add a new layer. Choose your preset shapes tool again>circle. Draw a circle in the center of your shape. Apply an inner bevel, same settings as before.
Step 5. Add a new layer. Set your foreground color to null and background to the same gold gradient you used above. Use same settings, except change the angle to 90.
Choose your preset shapes tool>triangle, and draw a shape similar to mine. Use your deformation tool to move it, resize it as necessary. Apply an inner bevel, using same settings as before.
Draw another triangle, smaller, and rotate it like mine. Apply an inner bevel, same settings as before. When finished, you should have something similar to this.
Step 6. Add a new layer and place it underneath your other layers (except for the background). Set your foreground to the gold gradient (angle 180), background null. Choose your preset shapes tool>circle - change the width to about 4.
Draw a small circle at the top of your triangle. Apply an inner bevel, using same settings as above.
Step 7. Set your foreground color to null, background to color #d12929. Choose your preset shapes tool>rectangle, using settings in the screenshot.
[Note: PSP 7 users: Your screenshot will look like this:]
Draw a rectangle approximately 128 x 128 (watch the numbers at the bottom of your screen).
Step 8. Now you need to edit this just a wee bit. Go to your layers palette. It should look like this.
Right click on the "New Rectangle" and then click "Convert to path." Your image is now ready to edit.
Click on your pen tool , and your image will now look like this.
[Note: PSP 7 users: click on your object selector tool . Click "node edit" in the popup box].
Those four little boxes on each corner are nodes. You're going to add a new one. To do so, move your mouse over the line at the bottom in about the center and then hold down the "Ctrl" key on your keyboard. You'll see an arrow and a "+ADD" appear, like this. (Note: I find it easier to edit when the layer visibility is turned off, but this is a personal preference. It's off in the screenshots that follow).
Click on the line and you will have added a node, like this (I've circled it in red for you in the screenshot).
Pull the node down a bit, like this.
Right click on the node>node type>symmetric. You'll now have this.
Move your cursor over the node at the bottom left. Right click on it>node type>symmetric. Move the node in just a wee bit. Place your cursor over either end of the arrow and pull to soften the edge (you want it nice and smooth).
Repeat to the node on the bottom right.
To make sure things are even and lined up properly, you may want to turn your grid on (view>grid).
To turn the grid off, just repeat (view>grid).
I've turned my vector layer visibility on so I can check how my image looks. Adjust things as you need to. When the image is how you like it, right click>apply.
[Note: PSP 7 users: When you're finished, just right click>quit node editing].
Step 9. Optional: I always save vector images as preset shapes (it saves time later if you need a similar shape). To do so, go to your layers palette and name the shape what you want it to be called. Then go to File>Export>shape and type in the name. Voila, it's a preset shape.
Step 10. Go to your layers palette and right click on your vector layer>convert to raster layer.
Step 11. Go to Effects>Texture Effects>Texture. Choose the denim texture, using settings in the screenshot. [Note: PSP 7 users: it's texture #16 for you].
Apply an inner bevel, same settings as before.
Step 12. Add a new layer. Set foreground color to white, background to null. Choose your pen tool>draw lines and polylines, using settings in the screenshot. [Note: PSP 7 users: choose your draw tool>single line]. Draw two vertical stripes on top of your red part. Draw them longer like mine (we'll get rid of the overlap in a sec).
Make your red layer active. Choose your magic wand, using settings in the screenshot.
Click anywhere on the canvas (not on the red bit itself).
Now make the white layer active and hit the delete key on your keyboard. All the overlap should now be gone.
Apply the same denim texture as before.
Step 13. Add a new layer. Set foreground color to #3608cc, background to null. Choose your pen tool, changing width to about 6. Draw two lines on top of the white. Remove the overlap just as you did before.
Step 14. Set foreground color to null, background to the same red you used before. Choose your preset shapes tool>rectangle. Draw a small horizontal box at the top. Apply the same denim texture as before. Apply an inner bevel, using same settings as before.
Step 15. Repeat Steps 12 and 13.
Step 16. Make the red horizontal top layer active (the one you drew in Step 14). Apply a drop shadow, using the settings in the screenshot.
Step 17. When you're satisfied with your medal, delete the background layer and merge visible layers. Save as a transparent PSP file (or other format of your choice).
And you're all done. I hope you've enjoyed making this medal (I had a blast with this one!).