This image was made from a photo of colorful chalk sticks taken at a chalk art street festival, where artists drew many beautiful and elaborate (though sadly temporary) pictures on the pavement with chalk.  The Liquib Warp Tool was applied using the Lumpify Style.  The Complexity value was set fairly low so that the scale of Warping was fairly large.  In this case, the Full Image Warp option was set so that the entire picture was affected.  It's also possible to Warp just a certain sized area.
Liquib Warped Chalk