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Diamonds
To start, you can grab the image that you wish to apply the diamond to. It must be a darker image. I used this watch that I made earlier. Next, download the PSD shape of the diamond here. Once opened drag the layer titled, "Diamond" to the canvas that bares your image, and place where you want it.
  Now that you have your diamond shape, you can now right click on the "diamond" layer and select, "Blending Options...". Now click on "Outer Glow".
  use settings at left
Do not click OK yet... still more to do
  Now click "Bevel and Emboss".
  use settings at left
Do not click OK yet... still more to do
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Fig. 1
  Now adjust the graph to match image at left, then click ok
  Now click "Contour".
  use settings at left
Do not click OK yet... still more to do
Fig. 2
  Now again, adjust the graph to match image at left, then click ok
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  Now "Color Overlay ".
  use settings at left
You may now click OK.
The Results!!!
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