If your wireframe turns red at any point in the transformation, Photoshop is warning you that your object is impossible to re-create in three dimensions under the current conditions.
Click the Options button to edit the following settings, and when you're satisfied with the transformation, click OK:
• Resolution Specify the quality of the image after transformation (applies mostly to objects mapped against cylinders and spheres).
• Anti-aliasing Specify the amount of anti-aliasing.
• Display Background Select this option to keep the original object (as it appeared before transformation) on the layer after the transformation is applied. (I recommend making a backup copy of the layer before applying this filter, and then leaving this option unchecked for best results.)
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