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Alienskin's Xenofex has a filter called "Rounder Rectangle". As far as creating some of the best looking rounded corners, I vote for this filter. I've used other methods of creating them, however, this plugin seems to do the best job, and fastest.
You can also take a circle, set guides to horizontal and vertical centerpoints, and slice the circle into quarters... These 4 quarters will be the corners to your rectangle.
There are 1000 different ways to do 1 simple task in Photoshop, so, try a few of them, and see which you like best.
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