Warped Effect

To start off, select the image you want to apply the effect to. This effect works best on fast "moving" type images such as sports or cars, but really, you can apply it to any image you want.

Now duplicate the original layer, to do this, right click on the layer on the layers palette then select "duplicate layer" (or just press "CTRL+J"

Now, with the TOP layer selected as your working layer, go to Filter->Blur-Radial Blur .

Amount: 100 You can play around with this.
Method: Zoom
Quality: Good (or Best for better quality)

You should now have something like the image below.

Now turn the opacity of the top layer down to about 50% so you can see the the bottom original image.

Now select the eraser tool, and select brush size of about 20 to 30 SOFT EDGE.

Now use the eraser tool to erase out the top image to reveal the item you want to focus from the original layer.

Now just turn the opacity of the top layer back up to 100 and you will see the effect. use the eraser tool to erase out any other part you want to show from the original image.

Now, with the top layer selected as your working layer, go to image->adjustments->levels.

Adjust the sliders to adjust color contrasts of your warped effect.

That's it. Now you have the warped effect.

Download my .psd file here