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Step 1
Select the layer with the object you want for the drop shadow effect. Click the "Add Layer Style" button at the bottom of the Layers palette and choose "Drop Shadow" from the pulldown menu. You will see the layer style dialogue.
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Step 2
Check the "Preview" option so you can see your changes live in the document window. The default drop shadow will appear. Click in the "Set Color of Shadow" box (the default color is black). When the color dialog opens click on the darkest shade of the image background to make your shadow, blend with the background colors.
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Step 3
Adjust the angle to reflect your image light source (you may have to imagine where the light source would be). If you want other layer effects to use the same light source, check "Use Global Light." Increase the Distance setting to make your object appear further away from the background or decrease it to make the object appear closer. Increase the Size setting to make the shadow more diffuse (this will reflect lower light or further distance as well) and the Spread to increase the color saturation in the shadow.
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Step 4
Experiment with the contour maps. The "Cove" and "Rounded Steps" maps produce different realistic lighting effects; the "Cone" and "Ring" contours create radiating shadows (if you're not sure what works best, stick with the default contour, "Linear"). Close the Layer Style dialog. In most cases you'll be good to go at this point, but if you need to shape the shadow (to cast it on a far wall or a different plane) you need a little more.
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Step 5
Make sure you still have the correct layer selected in the Layers palette. Choose "Create Layer" from the Layers menu Layer Styles submenu. Your shadow will separate onto its own layer.
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Step 6
Distort the shadow with the transform tool to bend it into the proper perspective. Move it as necessary to align the shadow with the casting object. Tweak the layer blend mode and opacity to blend the shadow with the layers underneath.
