This tutorial was written by me, Zuzzanna on Feb. 18 - 2013
any resemblance to any other tutorial is completely coincidental.
I used a tube from Melia Newman visit CDO for a license

Do not use this tube without a license

Font used: Maryam
Filters: EyeCandy 5 Nature - smoke
Mura's copies
Toadies blast'em

You can see another version in the bottom
the tube is from Sharon Hurst visit MTA for a license

Open a new layer 600 X 600
CopyNpaste your tube as new layer
Muras Meister

Elipse tool the settings

draw out an elipse on your canvas

selection invert - hit delete - select non
select all - float - defloat
selection modify - selection borders

new layer - floddfill the border with a color from your tube
Inner bevel

select non

select the tube layer
Effect Art Media effect - brush trokes

layers merge visible - drop shadow
image duplicate
on the bottom one
Toadies Blast'em

crop merge opaque

copyNpaste your tube - place it - add and your name

copy merge open AS paste as new animation
back in psp

Select the tube layer
Warp tool this setting

place your curser were you see the red +
and click very quickly 
copy merge - open AS paste after current frame
back in psp - click once more
copy merge - paste after current frame
copy frame 2 paste after frame 3

back in psp - undo twice

freehand selection tool
select the dragons nostril

Effect EyeCandy 5 - smoke
setting Small Classic

and basic to this

select non - copy merge - paste after current frame in AS

repeat the smoke for a total of 3 frames

now you should have 7 frames in AS
select them all and set frame properties to 22

Animation - animation properties and change the Opaque to white