Go to Filter > Blur > Gaussian Blur and enter in a value appropriate to the kind of effect you want to create. If you are aiming for a large subtle fadeout choose a large value but, if you desire a sharper effect, keep the value small. Experimentation is the key.




: Go to Filter > Pixellate > Colour Halftone and set the max radius to 10. This number relates to the overall size of the biggest dots, and can be varied to taste. Your channel should now resemble the image opposite.



: Press and hold CTRL and click the channel to form a new selection. You will notice that only your dots are selected. Now go back to your layers palette by clicking on the layers tab, select the white background layer, and Edit > Fill your selection with a funky colour of your choice. This effect may not be amazingly versatile, but it does lend itself to rather funky implementations of layer effects. Just play around and see what you can create - you may surprise yourself!