1. Open up a new image in Photoshop. I will be using this image of Itachi and Sasuke. [It has been cropped and resized].
2. Resize it to 100 X 77 pixels.
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3. Duplicate the image, and select Filter > Sharpen > Sharpen. Set the opacity to 53%. Then press Ctrl + E on your keyboard or select Layer > Merge Down. This will be your base.
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4. Duplicate your base and set the blending mode to SCREEN, 90% opacity.
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5. Create a new layer, and flood fill it with the colour 0b0552. Set it to EXCLUSION, 50% opacity.
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6. Create a new layer, and flood fill it with the colour 0b0552. Set it to SOFT LIGHT, 75% opacity.
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7. Create a new layer, and flood fill it with the colour 938cf3. Set it to SOFT LIGHT, 65% opacity.
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8. Create a new layer, and flood fill it with the colour d5f1b2. Set it to COLOR BURN, 70% opacity.
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9. Create a new layer, and flood fill it with the colour f0c3f1. Set it to LIGHTEN, 20% opacity.
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10. Create a new layer, and flood fill it with the colour 510652. Set it to SOFT LIGHT, 30% opacity.
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11. Create a new layer, and flood fill it with the colour b7f2ef. Set it to COLOR BURN, 100% opacity.
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12. Now, duplicate your base, drag it to the top, and DESATURATE it. [Shift + Ctrl + U] or [Image > Adjustments > Desaturate] Set it to SCREEN at 30% opacity.
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13. Select [Layer > New Adjustment Layer > Brightness/Contrast]. Set the brightness at -15 and the contrast at +20.
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14. Duplicate your base, drag it to the top, and set it to MULTIPLY, 20% opacity.
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15. Flatten your image. [Layer > Flatten Image].
16. Create a new 100 X 100 document and drag your flattened image onto it, using the move tool.
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17. Duplicate your image and DESATURATE it [Shift + Ctrl +U] or [Image > Adjustments > Desaturate], and set it to DARKEN at 35% opacity. Merge the layer down here, if you want.
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18. Paste this texture
by Ewanism and FREE TRANSFORM [Ctrl + T] it, then shift it using your move tool so that it looks like this.
Then set it to SCREEN, 85% opacity.
19. Paste this texture
by Colorfilter and FREE TRANSFORM [Ctrl + T] it, then shift it using your move tool so that it looks like this.
Then set it to SOFT LIGHT at 51% opacity.
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20. Add the word MEMORIES in the font GARAMOND in the size 14 pt, and bold some of the letters so that it looks like this.
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21. Create a new layer. Add this tiny text brush below the word at 65% opacity.
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22. Flatten your image. Create a new layer, then using your PENCIL TOOL in the colour #000000, and in the size 1px, draw a black border around the image. After that, add a white border [draw it around the INNER layer of the black border] in the colour #FFFFFF.
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Happy days, you have now made your avatar. :) Hope this helped with your avatar making. And if you have any questions, feel free to ask on the tagboard.