Hi Susan,
One of the more essential housekeeping items to do in photography is to get your horizons level. There are several ways of checking that your horizons are straight in Photoshop and one of the simplest methods is simply to turn on the rulers (View>Rulers), and then use the Move tool to drag down a guideline to the horizon. We've got a tutorial on it here.
Another option is to go to the Lens Correction option in Photoshop (Filters > Lens Correction) and then to change the angle setting in the custom menu. For this image I adjusted the angle two degrees to get the horizon back to level.
As for creating the misty effect, one of the easier ways to do this is by going to the Curves panel and gently pushing the middle of the curve outwards in order to lighten the image. What is worth noting is that in misty conditions, blacks tend to lose their intensity. With that in mind you might also like to try a small experiment; move the shadow end of the line on the Curves graph upwards about 2 to 5 percent; this will make the shadow area of the picture less intense.
The final adjustment that I made to the image below was to duplicate the background layer and then apply Gaussian blur to this new layer. I then changed the opacity in the layers panel to pull it back to about 5 or 10%. Again, this will add just a hint of softness to the overall image.
Otherwise, good effort.
Cheers, Anthony.
High and Dry - Image Doctor's edited version
