1.

Open a new image, 500 x 500, transparent, 16 million colors.

2.

Set your Foreground to null and your Background to #c8b494. 

3.

 Choose your Shapes Tool, Rectangle, Antialias and Create as a Vector both checked.   See Example:

4.

Draw a rectangle on your canvas,  It should be the size of your choice.  You can resize it if it is to large at the end of the lesson.

5.

Go to Objects, Align, Center in Canvas.  Then go to your Layer Palette, right click on your layer, and click on " Convert to Raster Layer". Right click again and rename it block.

6.

Now take your magic Want and click on a blank spot on your canvas.  Go to selections and click on invert.

7.

Now set your Foreground to #a18559 and your Background to null.  Set your Foreground Texture to Wood Grain.  Flood fill the image.

8.

Now go to selections and click on invert.

9.

Go to effects/drop shadow and follow my example.  I used #76654a for my drop shadow.

Now go back to your drop shadow and repeat it this time make it -9 on Vertical and Horizontal.

10.

Go to selections and click on invert.  This time add noise.  See my example:

11.

Now while you still have marching ants around your block lets add a border to it. Click on selections/modify/contract and lets contract our line in by 13.

8.

 Click on your shift key on your key board hold it down and click with your magic want anywhere in the blank area of your canvas your should now have what looks like this:

9.

Go to selections and then invert and you will have this:

Your ants will now be around the box in the center and the outer part.  This is were you will flood fill your border.

10.

Make sure your Foreground Texture is still Wood Grain.  Flood fill the border until it's dark enough. I did mine 3 x's.  Once you have your color go to effects/inner bevel and follow my example.

11.

Now deselect and add a new raster and rename it the letter that your going to put in the center of your block. Set your Foreground to null and your Background to the same color you used for your border.   This part is important because it will not work unless you set foreground and background as above.  Set Background Texture to the Wood Grain.  Choose your Text Tool, Selection  checked and apply a letter to your block.  Make it a big fat font.  .  It doesn't matter at this point if your letter is  centered on your block because once your done you will be able to move it with your raster deform tool.  Notice that with the text as selected it has the marching ants on the letter this is how you will flood fill your letter.  You may have to do it a lot to get the desired effect.  But remember your making it look like wood so that's why your flood filling it with the same color as your border and the wood grain checked.

12.

Select none when your finished flood filling.  With your letter activated click on the raster deform tool and move your letter to the center of the block.   Inner bevel as above  and drop shadow (see drop shadow example).

.

13.

Merge visible

14.

Add a new layer.  Set your Foreground to #ac9268 and your Background to #ac9268 and .  Go to preset shape tool and choose rectangle once again.  Draw a rectangle the same height as your block and bring it out some.  Look at your block and image it with a side.  Use your imagination to determine how wide the side should be.

Once you are satisfied with the size of it right click on vector and convert it to a raster then right click it again and rename right side.

15.

Click on your raster deform tool and holding down on your shift key move the side in towards the back giving it a more square appearance.  See example.

16.

Now do the same for the top of your block.  Using the rectangle and the same colors make a square and place it on top of the block.  Right click on the layer and convert it to a raster.  Rename it lid.  Once again use your raster deform tool to line it up. 

Now the reason that you rename these layers is if they are not exactly matched against one another all you have to do is click on the raster deform tool to get them to look more square instead of starting over.  Once your done with that merge it visible and your done