Creating navigation header for kid's gaming site

Create a rounded rectangle using rounded rectangle shape tool.

Enable "subtract from shape area" at the top bar. Create another rounded rectangle using rounded rectangle shape tool.

Double click the layer to open layer style window. Apply settings as shown.
Create a rectangle using rectangular shape tool.
Press Ctrl+T. Right Click and select distort. Adjust the nodes as shown.

Create several duplicates and fill with three different colors.

Press Ctrl+Alt+G to create a clipping mask.
Create a rounded rectangle using rounded rectangle shape tool.
Double click the layer to open layer style window. Apply settings as shown.

 

Create a rectangle using rectangular shape tool. Move this layer below all the layers in layer order in layer palette.
Double click the layer to open layer style window. Apply settings as shown.
Similarly create more rectangle buttons and fill with two different colors.
Just like the upper panel create a lower panel with less height.
Insert a cartoon image along with side name and place on the upper panel.
Type navigation links on rectangular buttons.
Insert a punchline using a nice font and place over lower panel.