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• Open the image you want to apply the special effect to.
• Duplicate the image by pressing SHIFT + D on the keyboard. (Never work on your original)
• If the image is less than 16 Million colors, increase the colors to 16M. (Colors | Increase Color Depth | 16 Million Colors)

Copy the background layer to new layer. Open the Layers Palette and drag the background button down to the Add New Layer button.

Resize the new layer only.

• If you haven't made any changes since creating the new layer, the new layer will still be the active layer. If for some reason it isn't, activate it by clicking the copy of background button on the Layer Palette.
• On the Menu Bar select Image | Resize
• In the Pixel Size box specify a width that is approx. 50 pixels less than the width of the original image.
• Make sure the Resize All Layers checkbox is unchecked.
• The Maintain Aspect Ratio checkbox should be checked.
• Click OK

Back on the Layers Palette, decrease the opacity copy of backgroundlayer until you can see your background layer through your copy layer.

Your image should look similar to this one.

Still in the Layer Palette, change the copy of background mode from Normal to Disolve