Open a new canvas (make it large, so you have plenty of space) and draw a rectangle the size you want your notebook paper to be with your Preset rectangle tool (foreground colour closed, background colour of choice). Convert to raster and apply any effects you wish (a paper texture, lines, etc.) I used a paper texture from Filters Unlimited, Mura’s Cloud filter and the Jeux des Lignes/Entrelacement filter. Duplicate, and move it beside the other rectangle, leaving a small space between them.
Add a new raster layer and with your Preset tool set at circle, draw a circle between the two papers the size you want your binder to be (foreground white, background closed, line width depending on the size of your papers). Convert to raster, and then carefully erase the lower two-thirds. Apply a metal effect. Add a new raster layer and move it under the binder layer. Add a small circle of medium to dark grey colour under the two ends of the binder with yout Paintbrush tool (size slightly larger than the size of your binder). Close the two paper layers, merge visible, then you can open your paper layers again.
Add a new raster layer, then Layers – Arrange – Send to bottom. With your selection tool set at Rectangle draw out a rectangle the size of your two papers starting from the corner of one paper. Selections – Modify – Select selection borders (use the both sides option) and expand by the number of pixels you want your cover to be, then on the bottom layer fill with colour of choice. Select none, then with your selection tool draw around the part between the two papers and fill with the same colour. Apply any effects you wish to the cover layer (I used PSP’s fine leather texture and a slight paper texture from Filters Unlimited). You can also add a slight bevel.
Duplicate your binder as many times as you wish and move into position.
You now have a basic notebook. You can now add decorative corners to the cover, duplicate one of the pages and curl it, add some text. etc.