Step1. Ok, first thing, make a new document that is 400x400 and paint the background white. If you don't know how to do this, make sure you have this browser window open and press alt+F4
Step2. Alright, now make a new layer, take out the eliptical marquee tool and make a 202x202 circle selection. Paint this circle red.

Step3. Ok, now we've got the bas for our yoyo, let's add some layer styles to it. Open up your layer styles and use these settings.
Bevel and Emboss:

Step4. Now we need to make the little indention in our yoyo. So make a new layer, and on it make a red 165x165 circle. Make sure to Center this in the main circle.
Now on that same layer, go to the layer styles and use these settings.
Inner Shadow:

Inner Glow:

Here's what we have so far.

Step4. Now we're basically done. We just need to make a screw in the center. I'm not gonna go into much detail on this, because the screw isn't very important.
Make a fairly small circle selection on a new layer above all the rest. fill the selection with #842b00. Now use these layer settings
Bevel and Emboss:

Drop Shadow:

Ok, we're done, you can take it a step further and add some text and a simple rope, here's my final result. The text isn't supposed to resemble the actual duncan font.

You can ask any questions or anything here.
