How can I create 2 small circles on the left and right hand side of another circle, equally spaced horizontally and vertically just like two ears on the side of a face?
I'm using Adobe Photoshop CS3.
You can achieve the alignment using Photoshop´s alignment tool.
1) Draw your 3 circles.
2) Use a guide to horizontally place the circles one next to the other.
3) Select the 3 circles with the move tool (easier if you have them in separate layers) and you will see the position controllers in the top bar:
Just click on the desired one (in your case, the second button), and it will align your circles vertically.