Paper Tutorial
http://www.designersplayground.com/articles/15/1/Paper-Tutorial/Page1.html
By Adam Carmichael
Published on 06/3/2005
Learn how to create the effect of paper easily.
How to Create a Paper Effect
1 First off, Create a new image 1 pixel in width and 15 pixels in height with a transparent background. Zoon in to 1600% and take the pencil tool 
and put a dot at the bottom of the image like the one to your left with a color of #4C98D9. Now select the whole image and go to Edit >> Define Pattern and type in a name and click ok.
2 Create a new image with a background of #FBF782. Go to Edit >> Fill and use these options and don't forget to select your new pattern.
3 Take the single column marquee tool
and put it will you would like your red line. Create a new layer and put #FF0024 as your foreground color and go to Edit >> Fill and select Foreground Color and make sure the Opacity is 100% and hit Crlt+D to deselect. You should end up with an image like the one to your left.
and put a dot at the bottom of the image like the one to your left with a color of #4C98D9. Now select the whole image and go to Edit >> Define Pattern and type in a name and click ok.2 Create a new image with a background of #FBF782. Go to Edit >> Fill and use these options and don't forget to select your new pattern.
3 Take the single column marquee tool
and put it will you would like your red line. Create a new layer and put #FF0024 as your foreground color and go to Edit >> Fill and select Foreground Color and make sure the Opacity is 100% and hit Crlt+D to deselect. You should end up with an image like the one to your left.