Measure the width of your entrance and draw an arch on a large piece of paper to meet those dimensions. Cut out the paper arch and hold it up to the entrance to ensure that the arch does not block the passage.
Remove the door and its frame completely from the entryway. If there are corner beads in the doorway, use a hacksaw to pull them out.
Remove the drywall surrounding the top of entryway using a utility knife until the framing for the top and the upper portion of the top of the entryway -- to the point where the arch form starts --are exposed. You should be left with a rectangular entrance.
Trace the arch outline on to the two pieces of 1/2-inch plywood and cut them out with a saw. Make sure the arches are flush with each other.
Position the screws over the entry framing, lining them perfectly. Screw the boards into place using 2-inch screws, spaced 4 inches apart.
Screw the wooden blocks into the interior of the arch along the circumference, using 2-inch screws. They provide support for the curved drywall that line the bottom of the archway.
Cut a piece of drywall measuring the width of the span between the two pieces of plywood and the length of the curve of the arch. Soak this drywall in water and let the ends rest on two sawhorses or similar raise objects so it naturally sags in the center to bend into the arch shape. It may take up to an hour, and rewetting several times for the piece to curve.
Position the drywall directly underneath the arch and screw it into the wooden blocks using 2-inch screws, spaced 6 inches apart.
Apply drywall to the sides of the arch, covering the plywood. Apply flexible plastic drywall corner bead to the joint along the arch on both sides. Mix joint compound and apply to the entire arch entryway.
Sand the entryway and paint it to match the rest of the room.