Need help with this tutorial...please

My question is how do I get the 3d look around the hole where the ball is in the finished image from this tutorial?

http://www.eyeball-design.com/tutorial_binding01.htm

bevel and emboss layer effect? [I don't think I'm understanding your q.]

Try maybe making a circle and filling it with a lighter blue, then cut out most of it to make a ring. Then select it and run a Gradient at an angle (that is what it looks like to me). Then the outer section looks like an emboss or some air brushing with a lot of gaussian blurring, to add some highlighting and shading. ?

Figure out how large you want the hole to be. Select the ball and go to Select->Modify->Expand. Input the size of the hole in pixels and add 4 to it. Using the gradient tool, create a linear gradient so the colors look similar to the one in the tutorial. Now, without deselecting, go to Select->Modify->Contract 4px and press del. You should now have the space from the ball and the beveled outer ring/circle/thing.

Thanks guys, I'll give it a try later today and let you know how I make out.

Thanks