some baubles i made from this tut

[url]http://www.photoshopstar.com/graphics/create-your-own-christmas-balls/[/url]

and my psd files (albeit they are only small so that i could post them, but hopefully you can make them a bit bigger if wanted before adding the decoration)

If i have got it right all you need do is select the bauble shape, change colour if wanted, then go to the next layer up and add your decoration on the titled layer then filter >distort > spherize 50 % ( all while still selected )
deselect and add string

please let me know if i have it right or wrong !

Palms