I built myself a nebula in Photoshop Elements that looks superb. It only took about 15 minutes. I did it by doing layer after layer of thick blue squiggles, gaussian blurring each one, every now and then making one layer "Colour dodge" the one beneath it. After I had all the layers I overlayed several layers of a cloud filter over it to give it the volumetric look. If I wanted a few more effects on it I would apply gradients to the layers or put some lens flare or other lighting in.
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