Although best done in-camera with proper aperutre setting, you can somewhat replicate bokeh with PS. I didn't take the picture but I edited it for a friend to show him the blurred effect. My PS skills are slim, but here are the examples.
Lens Blur was added to photoshop CS for this purpose. You'll never get it took as though a photo was taken with a tele lens with the subject isolated from the background, but it can be used in a selective focus type application.