Thanks for the comments guys. I'm working on something else now, Took a huge step, so the next image may be a while. :)
Applejuice: That's been digitally painted with a digital tablet like this:
http://www.tammex.com.au/store/images/CTH-460.gif
What I did was use the Ellipse selection tool to create a circle. In that circle I started shading in around the outside with a brush setting. I then on a new layer started shading in a floor and wall area.
This video may help explain it a bit: [Video]