Adding Shadow to Transparent Elements
I did this tutorial a while ago and I think it's really useful.
To add shadow to a transparent element without getting a dark unreal element there is an easy way.
1 - Start by choosing your element, I chose the Balloon from my kit First Love
2 - Add the shadow as you want it to be in the end. don't worry about the inner part of it, just focus on the outside to be as you want. I used these settings.
3 - Now click on the little arrow at the end of the layer, with the right side of your mouse and choose CREATE LAYER.
ATTENTION; Once you do this, all effects will be rasterized and no longer will be possible to restore, so I suggest that after step 2, you duplicate your original layer and close it. In the end if every thing is ok you can delete it. (to close the layer just click on the little eye at the begining of the layer and click again there when you want to open it again)
4 - If you notice now you have 2 layers (the inicial one on top and a new one below with the same name + DROP SHADOW. Go to the top layer (inicial) with your MAGIC WAND tool select all parts outside your element, in this case I had 2 spaces, all area surrounding the balloon and the space betwen the basket and the balloon so I clicked with the magic wand outside and than while pressing the shift key clicked with the magic wand in the space between basket and ballon. you'll see the "ants" around the ballon and around you're image border.
5 - Now go to SELECT and click INVERSE, you'll see the ants around the ballon but they are not around the image border any more, this means you are now only selecting the ballon inner parts.
6 - go to the bottom layer (the one with the DROP SHADOW on the name, and in your keyboard hit the delete key. you're done, all shadow that was inside your balloon is gone, you got your wonderful transparent element back with the shadow on the outside.
To finish it just DESELECT for the ants that were still there to disappear and merge visible layers (or save directly as .png).
If you have any doubts please just ask