I got this idea from looking at a tutorial using Photo Impact. And thought why can't
PSP users do it too. So here we go..You need Blade Pro or you can play around with what psp has to offer too. Onto a tutorial for making a watch.

Open a new image 600 x 600 black background.
I know it seems like a large image, but it gives you room to work.
Add a new layer.
Now go over to your Preset Shapes tool on the left.

Now choose the settings I have below.

Now when you do the face of your watch start at 300, 300 and make your eclipse until the
numbers down in the left hand corner say 200, 170.
Now go to your selections tools and select the circle, feather 0 antialias checked.
Draw a circle starting at 300,300. 
Make this circle 140 x 140. 
Now hit the delete button.
Your image should look like this.

Add a new layer.
Now with your selections tool and the rounded rectangle selected, feather 0 and antialias checked,
draw a rectangle starting at the 250,230 mark and make your rectangle 90,30 in size.
Flood fill this with whatever color your watch is.
Move it over to where it looks like it is in the middle of the outside of the watch.
Go to your layer palette, duplicate that layer, then flip it. 
It now should be on the bottom of your watch and look something like this.

Go to your layer palette and make the background invisible and then merge all visible.
(make sure a visible layer is active when you merge all visible or it will not give you the 
merge visible option)
You can turn the background back on.
Now you are going to want to grab your magic wand and click on the watch.
Now apply Blade Pro. 
I used a silver preset.
Now go to Selections, select None.
With your magic wand, select the inside of your watch.
Go to Selections, Modify, Expand, and expand by 1 pixel.
Now choose a background for the face of the watch. I chose this one.

Copy your background and paste into selections on your image.
Here is what mine looks like so far.

Go up to Selections, Invert.
Go to Image, Effects, Drop Shadow and apply these settings.

Go back up to Image, Effects, Drop Shadow and apply the same setting, but this time use -2 and -2.
Go to Selections, Select None.
Add a new layer.
Select your draw tool with these settings.

While you are at the draw tool option palette, click the middle tab.
Set these settings to match mine.

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