Russel Preston Brown has a new video on YouTube showcasing a new upcoming feature in Adobe Photoshop CS5 that brings the old “Free Transform” warp to a whole new level: Puppet Warp.

Many people use Photoshop to bend and twist images in unique ways. Russell Brown, senior creative director, delivers a new take on warping images and image elements in this early glimpse into Photoshops Labs. CS5 is coming on April 12 – www.adobe.com

The effect itself is a bit difficult to describe, but essentially you map a 2D Grid or Mesh over your shape and then define pivot points.  Using these pivot points you can “click and drag” to create some type of spline-interpreted rubbery shapes, or create more rigid transforms with wheel-type controls on each pivot.

The technology looks impressive, but seems to be heavily restricted to working on Transparent Backgrounds.  I would personally love to see someone using it on a photograph of a person against a real background, combined with the Content Aware Fill to fill in the holes.

See the video below.