Wendy
It took me about 15 mins. I took this shot for the back layer of my gold watch using a white backdrop and a single studio flashlight...
Then I took this shot of a gold clock for the top layer...
I loaded the back layer (watch) into a new CS5 file and lowered the opacity to make it pale looking. I then took the clock shot and selected just the round face and distorted it using polar coordinates, and made the backdrop transparent. I put this layer on top of the watch layer and fiddled with the opacity of both until it looked like this. I added the overlay frame in a routine I have, but you could do it in Flickr Picnik editing.
Apart from all that, I had absolutely no ide what I was doing!