By now, you should be an expert in creating basic, rectangular buttons. Just as well, because you'll need one for this solution! Create or select your basic button. Open the Layer Style dialog box by clicking on the Add a layer style button at the bottom of the Layers palette and selecting Bevel and Emboss... from the menu that appears. You've just added a bevel to your button. You can give the bevel a more rounded appearance by increasing the Size and Soften levels. I'm using 7px for Size and 8px for Soften, as shown in the image below.

Make the effect more subtle by changing the Shadow Mode color. Since my button is blue, I've changed the Shadow Mode color from black to blue (a slightly darker shade than my button color).

Bevel and Emboss options for smooth bevel

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