There are several ways to do the smoke... There are tutorials out ther like Creating Smoke | Abduzeedo by design or www.tutorialguide.net/smoke_effect_tutorial.html to make the smoke.. Just type in "smoke in photoshop" in Google But the quick and dirty way to do this is by using brushes. As smoke brush where you can just click and the smoke is made automaticly. For free smoke brushes go to news.deviantart.com/article/31495/ Just never claim that they are yours....there are other type of brushes for couple of dollars that are worth to pay for. The TR on the smoke picture I use Gaucaccian blur>wind>and outer glow to make that effect. On the background go to Filter>render>clouds> and with the use of the feather and some color you can get a nice effect.