The Challenge this week was to design a logo celebrating the 100th Challenge. In this image, I decided to display my logo effort on an actual T-shirt. The fonts are Princetown (for the '100') and script is NevisonCasD. The word 'Challenge' was modified with the type warp tool using the flag setting. The brushes are modified Photo Objects. Drop shadows were added to each logo element separately. The straight logo is shown below.

The woman's torso is a stock image. I used a blurred, black & white version of the torso as a displacement map for the logo, which I had place on a layer filled with canvas. The T-shirt is composed of layers with blending modes of overlay and normal and varying opacities.