It's my first icon tutorial ever, so please be gentle. This tutorial can be used in both Adobe Photoshop and in Paint Shop Pro, but was written for Photoshop CS.

We're going to be going from this to this .

Start off with your base image:

Crop to 100x100:

Make a new layer with the color #F5C096.  Set to Color @ 50%.

 to

Make a new layer with the color #110A6A.  Set to Exclusion @ 75%.

 to

Duplicate Base. 

Set it above all layers & change the blending mode to Soft Light @ 100%.

Make a new layer with the this gradient.  Not sure where I found the gradient, but if you know, please comment so that I can credit you.

Set gradient to Overlay @ 50%.

Add a thin pixel border (courtesy of teh_indy, if memory serves).

Now you're all finished with the image.  Here is what your icon should similiar to:

Now it's time to add some text.

Type in Haunted in #E4C4BF, in MS Sans Serif, Regular, 8pt.  Add a drop shadow of 50%, Normal mode. 

Erase the bottom half of the text, for this look:

Then add "Remorse is never ending" with the same settings except make it 3pt, instead of 8pt.  Add the same drop shadow settings, and you should come out with a similiar effect to this.

Hope you enjoyed this tutorial as much as I had fun making it! 

Please do not copy this tutorial exactly.  Be unique and add your own gradients/settings to it.