7. Go to Layer > Layer Style > Bevel and Emboss. Settings: Style inner bevel, Technique chisel soft, Depth 500%, Size 10px, Soften 0px, Angle 90 degrees, Hightlight mode Screen, Hightlight color #FFFFFF.
8. Select Layer 1. Using the lasso tool, create a jagged selection around the bullet hole as shown below:
9. Choose Select > Inverse. Now enter quick mask mode by pressing Q. Select Filter > Brush Strokes > Spatter. Settings: Spray Radius 10, Smoothness 5.
10. Exit quick mask mode by pressing Q. Next press delete to remove the outside portion. Add a small drop shadow to bring the metal some dimension. Your image should now look like this:
11. Finish up by adding some highlights to layer 1using the dodge and burn tools. Your final image should look something like this:
The bullet hole can be used on metal textures of all kinds (see sample below). Instructions for creating the brushed metal texture can be found here
