When I turned the page and saw this effect (used in a full-page ad for CMT's [Country Music Television] Flameworthy 2003 Video Awards), I just had to figure it out. It does a great job of looking like those pin-on election campaign buttons, but the way they added the photos in a cutout on the button is what really sold me. It takes a few steps, but once you've created one, you can use it as a template so the rest are easy!
Quick Tip: Jumping right to the tool you want
Most of Photoshop's tools have a one-letter shortcut you can press to switch to that tool. You don't really have to memorize them, because most of the shortcuts are the first letter of the tool. For example, the letter “L” switches you to the Lasso tool, “p” ...