Use layer masks to create reflections Tutorial
The double underlined links (or in-line text advertising) can be very annoying while reading an article or tutorial but it’s a great additional revenue stream for my site. People whom register an account and login won’t be bothered with these ads.
Intro:
Use a layer mask to make really neat refelctions in photoshop, I will show you 3 different reflections.
Download the image of the IPOD I'm using here.
Step 1:
Open up the PSD file you downloaded from above, Make a new file Ctrl+N with dimensions 128px width and 430px height.
Drag the image of the PSD you downloaded into the new created file, duplicate the image in the layers window.
You should have this:
Step 2:
Now you can make different selections from here on, but I will show you the one I like the most. And will show you later how I did the others.
Make a selection like shown below with the rectangular marquee tool 

and press delete on your keyboard.
Step 3:
Click this icon
to create a layer mask, with this you can easily hide places with BLACK, and make things visible with WHITE.
So if you use a gradiant from black to white, you have a smooth image from visible to transparant, which makes a very neat reflection effect.
Let's get to work..
Get the gradient tool
, take the black to white 
and drag a gradient from the bottom of the image we just cut to the top, look below if your not sure.
NOTE: Hold shift to make a straight line, this is also with the pencil tool, brush and more..

And there you have it, a nice small reflection.

I will show you some more reflections now.
Reflection 2:
This reflection I deleted the half of the duplicated image, and dragged the gradient more outside the image into the other original image, this will give you a nicer reflection when you use a bigger image to reflect.