Photoshop Round Rectangles with Autoshapes
This is a simple and flexible method for creating rounded rectangles
works in Photoshop 6 or higher.
1. To create a rounded rectangle tool using autoshapes you need to
select the auto-shapes tool rounded rectangle tool
2. Select the appropriate roundness from the setting and drag it
out onto the canvas.
3. Now you have a path in the shape of a rounded rectangle. Choose
the Direct Selection Tool from the tools panel (or press A), now to
turn the path into a selection right click and choose make selection.
You can also fill or stroke the path or turn the path into a vector
mask.
Hope this helps! ^.^