Hi John,
There isn’t really an automatic way of doing this. Quite often I work from flat designs (in photoshop) in order to produce a wordpress theme and I tend to work as follows:
1. Work out which parts of the psd file will be text and which are graphical.
2. Manually slice up the psd file and convert it into the smaller images necessary as well as working out where the text fits in etc.
3. Reproduce your psd in simple html with a css file. Check out w3schools for help with this.
4. Convert your html and css into a fully functioning wordpress theme – take a look at Sam Parkinson’s great tutorial.
5. Add some nice custom css drop-down menus to your theme.
Hope that helps a bit.
Cheers
Emile
