This tutorial was written for PSP7 but you shouldn't have to much problems converting it to PSP8.
You will need the following supplies for this tutorial.
A graphic of your choice or you can use the one I have used.
A tube of your choice or you can use the one I have used.
They are in this zip file "ZIP".
Eye Candy 3
Unplugged Tools/WaveMaker
#Alfs Border FX/Mirror Border

On Layer Palette promote background to a raster layer. Open graphic and duplicate. Close original graphic.
On Layer Palette promote background to raster layer. With Selection tool set on eclipse, select a oval as shown.



Selections/invert
Effects/Blur/Gaussianblur Use settings as shown.



Effects/Dropshadow using the following settings.



Repeat drop shadow using -2 horizontal and vertical.
Effects/Inner Bevel



Do not deselect.
open selected tube and reduce size 50%.
click on title bar and select copy for dropdown then click on title bar of new image and paste as new layer. Move tube to desired position.
Effects/Blur/Gaussianblur Using same settings as before.
Selections/Select None

Your image should look something like this.