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Using presets and Bryce library textures you can create a simple yet impressive volumetric nebula for your deep space projects.
Create an empty scene and modify you sky&fog settings to the Bryce preset “Starfield” mapping - this will set up your stars and space. You can always change these values and presets by using the SkyLab and modifying its entries.
You don't want to use a volumetric cloud plane because the nebula will be infinite and too dense. Use a sphere instead and stretch it around and position it as your nebula
Edit the material of the sphere by clicking the “M” on its selections. Make sure that the texture is volume(tric) and not surface. This will give you a 3D texture you can work with and it will fill your sphere so that you can place your camera inside the sphere.
For a cool effect that views the nebula from the inside out, place your camera inside the sphere as shown above.