Do you mean the step where use the transform tool (T)? Looks to me like they used the perspective transform.
Just CTRL + T to bring up the transform overlay, and then right click the object, and select Perspective. Then you can grab the corners and pull it up or down to adjust. May need to use some of the other options like Skew or whatever else there is so make it look convincing.
Hopefully that option is available in PS7, been a while since I used it so I don't quite remember the features.
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Originally Posted by Steve
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