Rounded corners in Photoshop

1. Method - with the Selection Tool:
Simply draw out a rectangular selection with the marquee tool
Then goto Select->Modify->Smooth. Then set the radius size depending on how round you want the corners in the selection to be.





2. Method - with Autoshapes:
select the auto-shapes tool rounded rectangle tool
Select the appropriate roundness from the setting and drag it out onto the canvas.
Now you have a path in the shape of a rounded rectangle. Choose the Direct Selection Tool from the tools panel (or press A), now to turn the path into a selection right click and choose make selection.


(thanks goes to: http://www.tutorio.com)