Create a new file, resolution=150ppi, Mode=RGB.
With the Selection tool, make a new selection.
Click SELECT>>MODIFY>>SMOOTH and enter a number to round the
corners of your selection
Save the selection as channel #4, If you plan on adding a drop shadow to your button, copy channel #4 to create channel #5 then make channel #4 active. Click FILTER>>BLUR>>GUASSIAN BLUR and blur the selection in steps ie: 6, 4, 2.
Return to the composite channel, then open the texture you want to use.
working with the texture use SELECT>>ALL then go to EDIT>>DEFINE PATTERN return to your new image and load Channel #4.
Fill the selection using Pattern, Opacity 100%, Mode normal. Do not deselect the selection.
Select FILTER>>RENDER>>LIGHTING EFFECTS and play with the
until you get what you want.
have found that unchecking 'White is high' creates a cleaner effect.
used Spotlight, 17, 75, -25, 63, 0, 32,Texture Channel #4, uncheck 'white is high', and 89.
Now you can enter your text or dingbat to finish.