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Apply a Circular, Stained Glass transparency. Drag the center of the Circular transparency down to the position shown above.
Create an 85 pixel circle. (Top Left) Apply a pale yellow and white Circular fill. (Top Center) Select the Alt Rainbow from the Fill Effect drop down list on the Infobar.
(Top Right) Apply a Circular, Mix transparency. Position the circle as shown above to create a flare effect.
This next step is not as confusing as it looks. Honest!
Create or use the last of the duplicate 275 pixel circles. 1. With the circle selected, press Ctrl k to make a clone. 2. Drag the top center control handle (the small black squares in the bounding box) down past the bottom of the full size circle and down some more until the Height of the circle on the Infobar is about 84 pixels.
3. Drag the top center control handle upward until the ellipse is 155 pixels tall.
4. Click twice on the ellipse to enable Rotate/Skew Mode. Drag the bottom center skew handle (the double arrowhead) to the right until the amount on the Infobar reads 44 degrees.
You should end up with the large circle and the skewed ellipse (4).