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No, a clipping mask will work but a regular layer/vector mask is is more practical. With the graphic, you have to use 4 clipping masks to accomplish the same effect that you can do in using only 1 layer/vector mask.

No, the example you posted first was made entirely in Photoshop.

Again the term "Mask by rectangle" is just a group layer name that someone gave to the group. There's noting different or special about this layer, it's just a group with a vector mask applied to it. The advantage of using a vector mask is that it is editable. But so is a regular layer mask.

I have done the same here....

[ATTACH=full]106729[/ATTACH]

I would have to see the actual file to see how the "dots shape" was applied. I cant tell from your screen shot where they originate.