1..Create a new file, resolution=150ppi, Mode=RGB

2..With the Selection tool, make a new selection.

3..Click SELECT>>MODIFY>>SMOOTH and enter a number to round the corners of your selection.

4..Save the selection as channel #4,

5..If you plan on adding a drop shadow to your button, copy channel #4 to create channel #5 then make channel #4 active.

6..Click FILTER>>BLUR>>GUASSIAN BLUR and blur the selection in steps ie: 6, 4, 2.

7..Return to the composite channel, then open the texture you want to use.

8..working with the texture use SELECT>>ALL then go to EDIT>>DEFINE PATTERN.

9..return to your new image and load Channel #4.

10..Fill the selection using Pattern, Opacity 100%, Mode normal. Do not deselect the selection.

11.Select FILTER>>RENDER>>LIGHTING EFFECTS and play with the settings until you get what you want.

12..I have found that unchecking 'White is high' creates a cleaner effect. I used Spotlight, 17, 75, -25, 63, 0,     32,Texture Channel #4, uncheck 'white is high', and 89.

13..Now you can enter your text or dingbat to finish