He included images which will guide you if you will visit his site:
1) First open Photoshop.
2) Now create a new file with a white background and 80 x 80 pixels.
3) Now create a new layer by pressing Shift+Ctrl+Alt+N.
4) Change your foreground color to black.
5) Now go download the Ultimate Web 2.0 Gradient pack, It contains over 130 pre-made gradients ready to use. download here:
http://www.megaupload.com/?d=EPUVYHHB6) Extract it and drag the pack anywhere into Photoshop.
7) You now have the new Gradients.
8) Now Right click on the New layer now filled with black, and go to blending options.
9) Go down to Gradient Display. I chose one of the blue gradients. You may choose which ever one you like
10) When you click OK your image should look like this or to whatever color gradient you chose.
11) Now create another new layer.
12) Go to the Ellipse Tool
13) Draw a oval on the image like this
14) You should end up with your image looking like this: (image is found on the webpage)
15) Go to the layer and change the opacity to 20%
16) Your image should now look similar to this:
17)Now go to the black square layer and go to blending options.
18) Now we are going to add a stroke or a border. Change the color to #545454 which is grey. Make the settings like this:
19) Press OK and your image should look like this:
19) Now the image is done and you can add your own text or logo. You can also go to the black square press blending options and change the gradient colors.
There are some examples you can find on the webpage.
***and to your question as to how to reduce photo size: go to this link:
http://www.ehow.com/how_6383_shrink-picture-with.htmlHow to Shrink a Picture With Photoshop
By eHow Internet Editor
Smaller versions of pictures are useful when creating a Web page. You can shrink a photo to a more manageable size using Photoshop.
Step1
Start Photoshop. From the File menu, select Open.
Step2
Locate the file you want to shrink and click Open.
Step3
From the Image menu, select Image Size. A dialog box opens.
Step4
Select Percent from the drop-down box next to Width. Type the percentage you want to decrease the picture by in the Width box. The Height box will automatically change.
Step5
If the results are not what you anticipated, open the Edit menu and choose Undo to return the image to its original size.
Step6
Save your photo when finished by clicking File and selecting Save or Save As.
** I hope this one info will help you.