Step 1

First, lets start off by creating a new canvas size 800X100 with the background being #363636. create a new layer and select your Rounded rectangular marquee tool. Set your radias to 10px and your foreground color to #252525. make a rounded rectangle about 750X32. right click on the layer that was created from that and go to rasterize layer.



Step 2

Next select your single row marquee tool and make a selection in the center of our rounded rectangle. Press CTRL+T. now drag the top of your selection up a bit so you can have more of a squarish top.



Step 3

Next we will create a new layer. hold CTRL+click on the rectangular layer to make a selection of this shape. now to to select > Modify > contract and contract by 3px. now select your gradiant tool. use the setting of #FFFFFF to transparent. now using your gradiant, go from the bottom to top of your selection. now go to Layer > layer style > blending options and set your blending mode to overlay with the opacity at 30%.



Step 4

Next make a selection at the top of your rectangle like mine:



Fill this with #FFFFFF. Go to Layer > layer style > blending options and set the blending mode to overlay and the opacity to 50%.



Step 5

All thats left is adding some text. you can add whatever looks good to you. for mine i used Verdana text at 10pt with the color as #ACACAC and no anti-aliasing. for my hover links i also used verdana text, but i changed my color to #FFA200 and made it bold.