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To the right of the 'down arrow' there is a small layer icon called 'Creates new rollover state.' I click this and a new rollover state called 'Over' appears. I can now apply changes to the 'Layer 1' shape. I go - Layer - Layer Style - and select - Color Overlay (you can apply any style(s) to each rollover state). On the right the 'Color Overlay' palette appears. I select a color and my rectangle shape changes to blue. I click the new rollover state icon again and a new button state appears called - 'Down.' I go to the 'Color Overlay' palette and select the color red. I know, I know, you wish you could design cool looking buttons like these. If I wanted I could add more rollover states like - Click, Out, Up, None and Custom. Custom requires manually entering JavaScript into the html.