the image doesn't have a whit square around it!!! Change the image's color to black.
and choose distort.
the effect of the shadow falling away from object. Put the black layer BEHIND the colored image.
pixels box in the layers palette. (It's the little Lock: with a box next to it)
Choose gradient, effect
(make sure that gradient is on forground to background) drag the gradient from the
'bottom' of the
shadow to the 'top'.
it a 2 pixel radius, then deselect.
(5 pixels). Choose the whole shadow again and Filter, Blur, Gaussion (2 pixel) again.
Blur (5 pixel). Select the top 3/4ths of the shadow layer. Filter, Blur,
Gaussion Blur (2 pixels)