After adding an image to a smart object layer, you should be able to render an image that can be both rendered in the browser as well as downloaded directly to the machine as a JPG/PNG. The rendering should ensure that all layers/shadows/etc. are properly rendered. Most importantly, this should be able to function strictly in the browser.
For example, screenshot 1 shows a PSD with a smart object for the art inside the frame.
Screenshot 2 shows a PSD with an image (the cherries) added in the frame. You will notice that the lighting and shadows from the lamp are clearly rendered.
After adding an image to a smart object layer, you should be able to render an image that can be both rendered in the browser as well as downloaded directly to the machine as a JPG/PNG. The rendering should ensure that all layers/shadows/etc. are properly rendered. Most importantly, this should be able to function strictly in the browser.
For example, screenshot 1 shows a PSD with a smart object for the art inside the frame.
Screenshot 2 shows a PSD with an image (the cherries) added in the frame. You will notice that the lighting and shadows from the lamp are clearly rendered.