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1. Open a new image, 600x600px, 200ppi.
Transparent background.
2. Starting at the center of your canvas (300x300), draw out a circle
that is 550px in width. (It is important to start at center for a step
you do later on. If you don't start centered then you will have to
line things up manually later on.) See screen shot on where to stop
your circle.

3. Use the airbrush set at:

or to your discretion. Color the inside of your circle selection
until it looks something like this one:

4. Now go to
Effect/Blur/Gaussian Blur. Radius 20. 5. Add more color as
you did in step 3, only not quite as much. Make sure there is color to
all the outside edge of the circle.
6. Add another Gaussian blur, this time using Radius 10. 7.
Add New Raster Layer. 8. Change the airbrush tool to color
white, and decrease the size to around 40-50. Add white for the glow
of the bubble, as show below.
 9.
Effects/Blur/Gaussian Blur, Radius: 20. Repeat step 8
again, and then do another Gaussian blur of Radius: 10. 10.
Selections/Invert. 11. Add a drop shadow of:
 12. Select None.
13. Duplicate this last layer. In mine it is layer 2.
Mirror, then flip this layer. Turn the opacity of this
layer down to around 35-40%.
14. Add new raster layer. You should now have 4 layers
all together. Move this new layer to the bottom, so it is your first
layer. 15. Add a tube or decoration of your choice. Making
sure it stays inside the boundaries of the bubble that we have created so
far.
16. Click on the next layer up, using your magic wand, click
anywhere outside the bubble. This should make a selection that looks
like this: 
17.
Selections/Invert. You should now have just the bubble selected.
18. Go back to your tube layer, you should still have the marching
ants around the bubble. 19. Go to Effects/Geometric Effects/Spherize.
Use at Strength: 50%. 20. Go back to Copy of layer 2 we made
earlier. (Any of your bubble layers would work fine for this step, in case
you have named yours as you went along.)
21. Add a drop shadow to this layer. Use the same settings as
last time, only change the blur to 25.
22. That's it. Save and use to your liking. Tube it,
save as psp format, or .gif.

This one was a .gif, I think it would have worked a little nice on a plain
white background.
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