This article explains Smart Objects in Photoshop and tells the different types of smart objects & how to create, edit, and convert them.

PS CS 4 does support smart objects. I would revisit the workflow of dropping the picture into Illustrator. You should be able to distort it the way you like, just not with the free transform tool.

Hilarious (in the dark humor way) Photoshop tutorial guy Donnie Hoyle is back with another installment of "You Suck at Photoshop"—this one showing you the ins and outs of Smart Objects.

Creating the Picture-in-Picture effect with Photoshop will add to the photo making it more interesting. The effect can be further enhanced by adding other effects.

Prepare the photo In Photoshop, choose File > Open as Smart Object and navigate to the soon-to-be-painterly photo.

You can add pretty much anything you want, too. Photoshop Secrets suggests using this feature to make it easier to add and edit smart objects: I use Smart Objects quite a lot in my work.

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