Quick Tutorial Shows You How to Create a Tilt-Shift Effect in Photoshop
Tilt-shift images can be made one of two ways: one is to capture them in-camera using a tilt-shift lens, and the other is to create the effect in post-production by using a clever blurring technique.
One isn't necessarily better than the other -- each has its own time and place -- but more often than not, creating the effect in post-production is the most convenient (read: cheapest) method.