1. Start out with an area large enough to cover the size of your bubble. I used 370x250 and filled it with the background color of my website.

2. Right click on your shapes area in the toolbar and select Eclipse Tool. Make sure you select Paths on the upper toolbar. Your options should look like mine do on this screenshots below:

3. Draw out an oval the size you want your bubble to be. Then select your pen tool and play around with it until your image looks something like what we have below. Make sure you still have Paths selected (check the above picture of the toolbar, third icon box from the left). You might need to read up on the Pen Tool a little bit to get the hang of it. Here's what I came up with...

5. Now create a new layer so we have our new layer and our background layer.

6. Choose your Path Selection tool and click on the oval so that it shows the "point" blocks. Now while holding the Shift key (this may be different on a Mac keyboard), click on your directional shape and both should be "highlighted" with the blocks. Right click on the area and choose Fill Path. Use my settings and white as your color and hit OK. Now hit the delete key to remove the selections and you should have something that looks like this below:

7. Now go to your Layer Style (see my other tutorials if you don't know how to get there by now!) and copy my options as the screenshots below show and ta da, you've got a sexy-looking quote bubble.

The good thing about this is the bubble itself is movable to any type of background, picture, etc. without changing anything else! You can also re-size it without any distortion! I've also included my text style in the PSD... Talk about smooth, eh? ;-)

It looks even better on a light or white background!