Quite an easy thing to do.
If you want to make the image fade away the same way, create new file, size width="100" height="2", then use the gradient tool, select the colors you want using the foreground color and the background color,(this determines the gradient pattern), hold shift and drag the gradient tool acrross you pallette to make a fading line.
Second, flatten the image, or choose merge visible, then select all and go to EDIT-Define pattern (if you are using Photoshop 6, it asks you to name the pattern if you are using a lower version of Photoshop then it might not.
After you have defined the pattern, open another new document size width="100" height="100" then goto EDIT-FILL in the contents pulldown highlight PATTERN (if using Photoshop 6, you need to select one of the saved patterns, the little scroll is right below content pulldown), select your pattern then go to the BLENDING pulldown and select Normal, push okay and the pattern will tile Vertically.
The widths and heights are examples, but when making your first line choose height between 1-5, I suggest staying between these guide lines, also you can add a background layer and choose the color if you wish using the fill tool.
Once your vertical pattern is done, then if you wish to tile it horizontally, do the same method as descibed above except your final image will have a greater width than height.
Hope this helps, and I think this is what you are after.
PS- After you have created a long bar, you can paste it into a new document and add layers or bevel it etc.
Nate(0598792469)