Step 1
Firstly create a new document (File > New) 540 by 440 pixels. Fill the background with the colour #1b1b1b by going Edit > Fill.
Step 2
Secondly we are going to be creating the background of the navigation box. Create a new layer, you can do this by going Layer > New > Layer or using the short cut Ctrl + Shift + Alt + N. Select the rounded rectangle tool and set the radius to 5 pixels. Make a selection of 250 by 300 pixels.
We are now goingt to be filling this selection with a red gradient. Select the gradient tool and set it to radial. Fill the selection with a gradient from the top center (#bc0303) to the bottom center (#3f0000).
Step 3
Thirdly, we are going to be adding an outer glow to our navigation background by going Layer > Layer Styles > Outer Glow and enter the settings below.
Now it should be looking like this.
Step 4
Select the text tool and add in some text for the title of the navigation box. The font I have used is Verdana, Regular, 22pt, Strong, #ffffff.
Step 5
Create a new layer and using the rounded rectangle tool again make a selection of 230 by 250 pixels at the bottom of the navigation background (with 10 pixel spacing on the sides and bottom).
Fill this selection with a dark grey colour (#111111).
Step 6
We are now going to be adding a shine effect to the new layer. So on a new layer (keeping the selection that you had before) go Select > Modify > Contract by 10 pixels.
Fill the selection with a radial gradient from the top left (#ffffff) to the bottom right (transparent) using the gradient tool.
Lower the opacity of the layer to 5%.
Step 7
Now for the text links, using the text tool add in some text to act as links. The font that I have used for this is Verdana, Regular, 12pt, None, #5a5a5a (#ffffff for the hover effect). Set the line height to 30 pt.
Step 8
Next up is adding in dividers to go between each text link. Make selections of 210 by 1 pixel using the rectangular marquee tool between each line and fill with the colour #1e1e1e.
Step 9
The last step is to add in a background colour behind the active link (in my case I've made the Photoshop Tutorials link active) so create a new layer behind the text layer and make a selection of 210 by 30 pixels and fill with #171717.