We start designing the top level (main) navigation of the site. We're starting with the desktop size screen (at an admittedly arbitrary width) but we're not worried that the navigation will have any problem adapting to a small screen.
We decide that icons are a pretty cool thing to use to visually distinguish nav links from each other. The last designed used images, but we'll be smart and use an icon font. We'll get more into that in the next video.
Organization of the Photoshop layers starts to happen. This is something we'll have to stay on top of throughout the design process to keep our Photoshop sanity!
The shadowed top navigation links are somewhat inspired by my Kindle Fire. The browser on that has tabs which have a very strong shadow beneath them onto the next tab. It doesn't look "real", but I like it.