I googled 'how to make a blinkie using Photoshop Elements 6.0' and found this easy tutorial on ScrapWhat.
So I had a play around and came up with the following. This is for my hubby, who now has a forum for his World of Warcraft Guild called We Are Furions. I made a header for it a couple of weeks ago, and matched the blinkie with it.
Then I made one for my blog using the beautiful Enchanted Forest by Vicki of A Work in Progress and the Add On by Sara of Sweet Blossom Designs.
I'm pretty please with how it turned out. My next challenge is to try my hand at making my own blogwear!