Alright this one is similar to the Dream effect, just a little more complex.

1. Grab the Picture that you would like to use.



2. Duplicate The Layer 3 Times. (Layer > Duplicate Layer)

3. On The Top Layer, Change the Blending Mode to "Soft Light"



4. On The Layer Below That, Change the Blending Mode to "Hard Light"



5. And On The Layer Below That, Change the Blending Mode to "Lighten"



6. Now select the very bottom layer, and go "Filter > Stylize > Diffuse" and select "Anisotropic" now press okay.



7. Now go back up to the top layer, and go "Filter > Pixelate > Mosaic" and use these settings:



8. Now, Duplicate the top layer (Layer > Duplicate Layer) and set its blending mode to "Vivid Light"



9. Now with the top layer selected go "Filter > Blur > Motion Blur" and use these settings:



10. Now Repeating Step 7, go "Filter > Pixelate > Mosaic" and use these settings:



Your Final Result should look something like this:



Let me know what you think of it

-Scott