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I found the Channels palette tab behind the Layers palette




I am by no means an expert, barely a novice, but I believe the tutorial is copying the person layer (just the selection of the person) and pasting it to a new channel (possibly a masked channel), then saving it to a psd file, and later loading that file as a displacement map. In PSP X, I think (not positive) that this equates to saving either the image selection to alpha channel or creating a mask and saving that to alpha channel. Sounds confusing because it is! Anyway, I tried messing around in PSP X, to do something similar since it has a deformation/displacement map effect, but I wasn't able to get a detailed displacement like the PS tutorial...it was a more generalized "glob" displacement with a vague outline of a person. I don't know enough about masks or channels to be of much help. I'm really sorry. If you want, I can quote things from the PS help files, if that will give you any insight on what the tutorial is doing.