1. Create a new 165 x 165 pixel. Press D then X and fill the document with white. Then create a new layer, select the rectangular marquee tool and then make a button-like selection anywhere. With the selection still active Press D, then apply a stroke with settings [Width: 1px, Color: Black, Location: Center, other settings leave as default] and deselect. Now you may notice that your rectangle isn't perfectly center, even though it doesn't matter that much, you may visit this tutorial and center your button outline.
2. Next select the pencil tool and use 1 px size brush, then draw in the corners similar to part 1. in the left picture. Then select the eraser tool and the tool bar at the top, make setting [Mode: pencil, Brush: 1px]. Now erase the outsides of the corner leaving a thin line that matches the rest, similar to part 2 of the picture to the left. Then select the paintbucket tool, choose a color of your choice, and click anywhere in the outline.
3. Now select the pencil tool and make sure its brush size is 1px. Then select a lighter version of your button color, and draw it in the top and left, then choose a darker and do the same for the bottom and the right, this should give the illusion of light shining on it from the upper left.
4. Finally we are going to add a drop shadow with THESE SETTINGS. Then you can add the text you wish and your done. Now you have a great little button.
