Step 1
Create a new document with width 600px and height 300px.

Step 2
Create a new layer and name it 'base';.Grab the Rounded Rectangle Tool and draw a shape like the one shown below with the settings shown. Choose a corner radius of 8px. The colour you choose is not really important as we will change that later using styles.

Step 3
Now we will give the base layer some style! On the layer palette right click on the 'base' layer. Choose 'blending options' and apply the following settings to the respective tabs.




If you are wondering where to get the Gradient Editor dialog box, just click on the gradient you find in the Gradient Overlay setting panel and a new window will pop out.
Okay, your result should look like the image shown below:

Step 4
Now we will create the two end bits for the tab. To do that, our first task will be to create a selection of the desired shape. With the Ctrl key pressed down click on the layer thumbnail of the 'base'; layer on the layer palette. Now we have the boundaries of the 'base' layer selected. Now create a new layer called 'left_end'. Select the Elliptical Marquee tool and with the settings shown below trace out an ellipse as shown.


The result of these actions is that we get an intersection of the boundaries of both the 'base'layer and the ellipse that we drew out. You should end up with the following selection.

Now select the Paint Bucket tool and fill the selection with a dark shade of gray. Okay so the left end bit is ready. Now you can repeat the same process for getting the right end bit. But here is a short cut: Just press Ctrl+J and you get a copy of the layer 'left_end'. Rename it to 'right_end'. You also need to invert it laterally to fit it in on the right end of the tab. For doing this, with the 'right_end' layer selected on the layer palette choose from the menu: Edit > Transform > Flip Horizontal.
Position it on the right end of the tab so that you get the following result:

Step 5
Now we will create the dark coloured bar at the back of the 'base'. For this, create a new layer called 'back_tab' and move this layer below the 'base' layer in the layer palette. Now grab the Rounded Rectangle tool (choose any colour for now) and draw a shape below the base so that you get something like this:

Now apply the following styles to the 'back_tab' layer.




Step 6
Our navigation bar is beginning to look good now! Let's put in the links now. First create a new layer called 'outer_gradient'. Now grab the rounded rectangle and draw a shape like the one shown below.

Now apply these gradient settings.


Here is the result:

Now create a new layer called 'led'. Choose a red foreground colour (#f01f15) and draw a led using the Rounded Rectangle as shown below.

Apply the following layer style. (By right clicking on the 'led' layer in the layer palette and choosing 'blending options' and going to the inner shadow settings)

Now we will create the highlight effect on the led. Create a new layer above the 'led' layer called 'highlight'. With the foreground colour set to # f39995 draw a line within the led as shown below. You have a cool looking highlight now as shown below:

Okie, we are nearly there. Now choose the Horizontal Type Tool and type out the name of the link you need to create. I chose the font 'Lucida Sans'with size 10px. Here is how it looks now:

Now we obviously will have more than one link on this navigation bar. So it is better that the links have some sort of separation between them. For this, create a new layer called 'lines', choose the Pencil Tool (with foreground colour #EEEEEE) and draw a line like the one shown below. (You could zoom in a bit and draw like I have shown)

Now zoom in and draw another line (this time with foreground colour #909090) right next to the line you have drawn before as shown:

Step 7
To create more links on your navigation bar. Create a new layer group called 'link1'

Select the layers 'outer_gradient', 'led', 'higlight&', type layer, and the 'lines' layer (you can select multiple layers by Ctrl clicking them on the layer palette) and drag them into the layer group 'link1';. Right click on the layer group 'link1' and choose 'Duplicate Group'. Name the new group as 'link2'. With the 'link2' group selected use the Move Tool to position it where you want on the navigation bar. Similarly you can duplicate this group to create more links. Here is what I got:

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