UV unwrapping a model is damn hard. Trust me, you need to be modelling in 3d for at least a couple of months to even understand it. And you need a 3d program, not photoshop to do this.
Well said. Although you *can* use photoshop for creating the base 2D texture, you need a modelling program to actually map it to the model correctly, warp the image and all that crap. Like iamthwee said, it's not easy.
hes casting a spell how would I do that in a game? Model it?
Nope, you need a particle engine for that. Tiny little dots are generated by the engine, and the idea is that the engine decides what the color and velocity of each particle is, and moves it according to what the programmer wants.