1.
Open a new file. I used 200 by 200 pixels (in RGB mode).
2.
Now fill the background layer in with Brown (Hex: 996633).
I used one of the default colors in the Swatches like shown,
that worked pretty good.
3.
Add noise: Filter>Noise>Add Noise. Amount 60, Gaussian
doted and Mono checked.
4.
Motion blur: Filter>Blur>Motion Blur. Angle 0, distance
614.
5.
Add noise once more, this time enter 8.
6.
Ok lets make the knot. Select the Radial Marquee tool and
make an oval shape on the image somewhere. Then Feather
the image: Select>Feather. Enter about 10 for the amount.
7.
Filter>Distort>Wave. Try and match your settings (which
should be default) with mine from the screen shot. Also
keep pushing the Randomize button for different combinations.
8.
When we applied the wave filter, our knot becomes slightly
blurred and doesn't fit in with the rest of the wood. To
fix this, while the knot is still selected , Go to Filter>Sharpen>Sharpen
Edges. Do again if needed. Now are sharpness is back, this
makes it look real.
9.
Deselect. Ctrl-D
Done.