Today I'm going to show you how to create a neon image in Photoshop CS3 using Custom Shapes.

Step 1:
A. Create a new canvas by going to new>new.
B. Make the image whatever size you wish, i prefer 400x400.
C. Next make the background Black.

Step 2:
A. Create a new Layer and select the Custom Shape tool, a shape and pick a colour.
B. Hold shift and drag shape to any size.

Step 3:
A. Control Click Layer 2 and go to Select>modify>contract.
B. Choose 4 pixels or so and then delete the selected area.
C. Press Ctrl D to deselect.

Step 4:
A. Right Click the Shape layer and choose blending options then go to Colour Overlay and choose any colour.
B. Make it lighter than your chosen colour.

Step 5:

A. In the same window, select 'outer glow' and pick the same colour as before - this will be the final product colour.
B. Make Sure the Opacity is about 75%.
C. Change the spread to 5% and the size to around 15px (Doesn't look like neon if you go over 10% for Spread and 20px for the size.
D. Select OK.

The End
Fiddle around with the spread and size until you like it, change the colour if you want, make the shape bigger, smaller or whatever. You now have a Neon Image