Have you entered the 152nd GI SOTW? CLICK HERE for more information. Also, take a look at the winner of the 151st GI SOTW HERE.
IntermediateCompleted a few beginner tutorials and want something a little tougher? Take a look in here. Really start to work on your Photoshop skills.
I'm sorry Screech I don't know the exact setting for step 2. I was asked to write a tutorial on this tag after I made it. I can tell you that the settings are almost identical to the first smudge layer. Only thing I did was lower the brush size.