How to make: Displacement Dots
Step 1 First of all take your image, (I’m using a photo from sxc.hu).
Step 2 Get the smudge tool and set it to all of these settings:
Step 3 Create a new layer and start smudging. Make sure your drag movements are very small, cause the dots fill the screen verry quickly.
Step 4 You may want to resize a smudge layer. I usually go for 50% when I do this (to resize, go, edit>free transform, then change the boxes from 100% to 50%)
Step 5 Keep making new layers and smudging (only transform layers when you feel appropriate) until you’ve got to overkill, at this point you may want to delete a few layers, or erase some of the dots.
This was my final result:
