TUTORIAL: How to create a reflection of any layer... or a real shadow...
THIS IS VERY EASY... for beginners mostly...
I will do it with text and you can figure it out how to do it with other objects...
TEXT
1. Open your document and select the text you wish to create a reflection of...
[I have a random background in place]

2. Click Layer > Duplicate Layer... and call it reflection
[You should not see any noticeable differences]
3. Click Edit > Transform > Flip Vertical
4. Move it so that it's beneath the original text
[You can leave a big space between them, a small space, or no space. It make no difference]

5. Then click Add Layer Mask in the Layers Window...
[Your foreground and background colors will automatically become black and white]

6. Click the Gradient tool and drag it like this:
[Tip: holding the "Shift" key keeps it straight]

7. Viola!

(optional) 8. Now if you'd like to augment the reflection you can decrease the opacity... around 80% looks great..
Now that you have read this you can create a reflection with anything. You can also create shadows to objects by simply overlaying it with black, moving it where you want, blurring it slightly (depending if you want that effect) and then skewing it in the transform menu.
I hope you enjoyed and found useful my first tutorial!
lholmes 