Looks like this will be useful, easier than doing it in PS yourself 🙂
Tilt-shift time lapse videos by Keith Loutit were recently featured all over the Internet, inspiring others to figure out how to achieve the effect in their own photos. You could Google a step-by-step tutorial, or you could save yourself the trouble and use Tiltshiftmaker.
Pop a photo into Tiltshiftmaker, move the sliders around to choose the area you want to focus on, and that’s all there is to it. It seems to work best with photos that are shot from above and from a distance. If you need some inspiration, there’s also Tiltshiftmaker’s gallery you can check out and add your own photos to.