I think I may have taken the "easy" way out here, Im not good
with tutprials, but Im sure once you give this a shot, you can play
around with different settings, this was a quick way:
(I mainly use Paintshop, and use PS and PSE for other things
but I know that you can adapt what I did to suit your
needs in PSE or PS)
I opened a New Image, filled it with a pattern, but Im sure
you can fill with any color, gradient etc.
I then opened your image and copy and pasted it as a new layer
made sure it was above the "fill" layer.
While I had the stitch layer active, I used my magic wand set to
"add" and then clicked inside of each diamond including all the little
spaces around the edge. Make sure you click each.
You dont want to "Select All"..you want to surround each "diamond"
otherwise you wont get the needed beveling inside your pattern
Leaving the marching ants around the stitches, I then switch to the bottom
fill layer, if you hide the stitch layer you will see the marching ants
in the shape of the stitches on your bottom layer. (Hiding the top layer
will also aid you in seeing where you missed selecting)But make sure you
are swtitched to the bottom when applying the beveling!
I then went into the Effects area and went to the Bevels area
and with the round bevel gave it a small "depth" and a larger "softness"
you can play with this until you see what you like.
My settings (in paintshop) were:
Rounded bevel at size 8
No Shine, No Ambience
Once happy with Beveling, I then swtitched back (with selection still active)
to the top Stitch layer and played with the Shadow, here you can decide what you like best
Once I felt it looked ok, I then went ahead and merged the layers and saved as JPEG
Im attaching the end result to this message. I havent tried it yet, but perhaps once
you finish this, you can lay it over another pattern and play with the Blend modes?
not certain about it cause I only just threw this together.
I am interesting in knowing what technique you came across and ultimately used as well.