High Dynamic Range Imaging (HDRI) is a process to display detail in both the highlights and shadows of an image with high contrast. The process usually starts with several exposures of the same picture - Normal exposure, under exposure (to get details in highlights), and over exposure (to get details in the shadows). Photoshop has great tools for merging photos into 32-bit HDR images, but you must purchase additional plug-ins or software (Such as the Photomatix Tone Mapping Plug-in) to get the image to display properly on you monitor or in print. The software performs a process called Tone Mapping, which basically selectively displays dark parts of the highlights, normal parts of the midtones, and bright parts of the shadows.
This tutorial will give you similar results without the need for expensive Tone Mapping software.
Start by taking three exposures of the same shot - Normal Exposure, Overexposed, and Underexposed. A lot of camera have an auto-bracketing feature that will do this for you automatically. Start by getting all three photos into one Photoshop file by going to File-> Scripts-> Load Files into Stack. Choose the files of the three exposures and check the box to attempt to automatically align the images if your shots were done without a tripod. This will put all three photos onto their own layers. Reorder the layers so that the overexposed image is on top, the under exposed image is in the middle, and the normal exposure is on the bottom.
Add a layer mask to the overexposed layer. Then select Image-> Apply Image... In the dialog box, select Multiply blending mode and check the box that says "Invert".
Add a layer mask to the underexposed layer and apply the image again to this layer mask, only uncheck the "Invert" option. That's it!
The resulting image, of course may need some tweaking of the color saturation and levels. I performed this process with a test image that I shot, and the resulting image appeared to have fairly good detail in the highlights and shadows. The midtones appeared a little over-saturated, especially the reds. Using the Photomatix Tone Mapping Plug-in, the resulting image appeared very grainy and unrealistic, with much less detail in the highlights and over-exaggerated highlights.