In this tutorial, I will teach you how to create a relistic looking nebula with stars and clouds.

First off, open Adobe Photoshop 7 or higher. (It may work with Adobe Photoshop Elements 3+)

Next, create a 500x500 image, 24-bit color.

Choose your nebula colour by changing the colour of the foreground. I suggest a pinkish-red or a purple, but try experimenting.

Next, we need clouds. Select Effects->Render->Clouds. You should have a cloud formation covering your blank image. If you do not like the colour of the clouds, experiment by changing the foreground color and try using the clouds again.

Once you have your desired colour, we need to shape it. Use the Effects->Render->Lighting Effects.

Experiment using the "spotlight" mode. It works best and gives the desired effect. Once you have shaped you nebula, it's time to add stars. This is a fairly easy part.

Use Effects->Render->Lens Flare. Place about 3 different stars, varying the intensity of each. The bright stars should be nearer the center of your image than the dull ones.

You're done! Don't forget to save and start experimenting!