Photoshop CS2 adds a new transformation type to the Edit > Transform menu called Warp.
With the new Warp command you can transform layers into a variety of predefined shapes, or use the custom option to push and pull your image around according to an invisible grid.
All this works right in the document window, so you don’t need to learn a new dialog box like you do for the Liquefy command. The Warp options are similar to those found in the type tool — arc, arch, bulge, shell, flag, fish, wave, rise, fisheye, inflate, squeeze, and twist.
In Adobe’s example, you can see how a layer was warped to fit a can. Layer masks and the multiply blend mode make the transformation appear even more seamless.Here is one I did using warp.
Have a play and have fun. A great tutorial can be found here.
