Creating A Hot Air Balloon!
Now the fun part!
1. Is your Work Saved?
I would keep this work to play around with later
and call any work you do here by a different name.
With Layer 1 still the active Layer.
Select the magic wand.
Click on the transparent area of your image.
Go to Selections and Invert.
2. Go to Effects
and down to 3D Effects and across and down to Outer Bevel.


Go to Selections and Select None.
You could merge your layers,
crop your image and tube your balloon here.
3. Now Go to Layers and Add New Raster Layer.
Name the layer 'sky'.
Go to Layers , then down to Arrange
and Send to Bottom.
Go to Flood Fill and then choose a nice blue colour
and click on your image.

4. Now select the Tube Tool. 
Use the cloud tube
and add clouds of different sizes as illustrated.

5. Go to Layers and Add New Raster Layer.
Name this layer if you feel you need to.
I then used this bunny tube.

Click this button
to go to the site for the bunny tube.
(Sorry not available yet,
waiting for permission.)

6. Go to Layers and down to Merge and across to Merge Visble.
Then go to Effects,
down to Blur and across and down to Blur.

That's it!
Then I added a nice border.
Don't forget to save your work.

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