You can click on the LINK button below to download a copy of the file used in this demonstration. It's in .zip format, but I'm pretty sure Mac users can unzip with Stuffit.
I use Photoshop 5.5 on a WinXP PC. I've tried both 6 and 7 versions, but I find I can work faster and use less screen real estate in 5.5. In fact, I don't know of much I can't do in 5.5 that I can do in 6 and 7.
This tutorial will demo in 5.5, but those of you who are using 6 or 7 will find it easy to follow along as well. All the features can be duplicated in PS 6 or 7 with ease.