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For this portion of the tutorial we are going to pinch our circle. I am going to show you several versions of the what the pinch deformation can do to your image. You decide how far along you want to go with this because tastes do differ.
 Start with the basic circle image making sure you still have the Circle layer as the active layer.
Go up to Image | Deformations | Pinch and set the Effect to 99% and then Click OK.
Your Circle should now look like this:
I went ahead and Pinched the image two more times with the settings still set to 99% each time. I liked the way it looks like a star.
 
Here's where you play around with the settings, colors etc. I decided to make a bullet out of our star just for fun.
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