Designing a Diving Wallpaper

Change layer blend mode to Overlay, open Layer effects and add:
- drop shadow (black, multiply, 40-50%, 1px)
- bevel and emboss (both highlight and shadow are white, overlay, highlight opacity: 10%, shadow opacity: 60-70%, size = 0px)

now, hide this layer (but keep it selected), then open Paths palette, right-click on the path and in the menu click Make selection...

Create new layer, send it backward the layers palette, then create merged copy of the selected area (Ctrl-Shift-C then Ctrl-V). Apply some Gaussian Blur to it (Filters menu - Blur), 2-3 pixels.

Create another new layer, send it backward the layers palette (behind the merged copy), then use soft black brush (B) and make a spot. Transform it (Ctrl-T) to stretch it horizontally.

It will be the shadow from water drop.

Make original water drop shape layer visible again, then create new layer above it, and draw a grey circle like shown here: bigger and aligned to bottom of water drop.

Here goes the interesting trick: set layer blend mode to Overlay, then open layer effects and add Gradient overlay. Set gradient blend mode to overlay too, opacity to about 70%, style = radial, reverse. But we will need to modify the gradient itself, and here is how...

click inside gradient - Gradient Editor will open. Choose black-to-white gradient (3rd in default set), then find the black slider on bottom-left of gradient, grad it a bit to the right, then click on empty space where black slider just was: new slider will appear. Change its color to grey.

Apply this gradient, then Create Clipping Mask with previous layer (Ctrl-Shift-G). Boom! :-)