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Make sure the object you want to make transparent is in a layer of its own above other/background layers. In the layers dialog with the transparent layer selected, take the FILL slider down to 0% (not the opacity slider above it).
The object should disappear. Now apply blending options such as drop shadow and more importantly bevel/emboss, etc. Play around with the settings. the object should then 'appear' with just the settings you select and appear transparent. Most importantly, in the bevel/emboss settings, play around with the gloss contour and the angle/altitude settings.
Hope this helps.
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