1. Make a new image large enough to fit the text which you want to reflect,plus extra height. Type your text, and position at the top half of the document.
2. Select your text layer in the layers window and goto layer > duplicate layer. Call the layer reflection. Next goto edit > transform > flip horizontal. Now select the move tool (
) and whilst holding down the shift key move the reflection layer down until the top of it is just under the original layer.
3. Right click on the reflection layer and select rasterize layer. Then select the layer and set the opacity to 50%.
Now choose the rectangular marquee tool and select half from the bottom of the reflected text to half way up. Then goto Select > Feather . Choose 40px, click ok, then press delete. Keep deleting until the bottom of the reflection has an effect you are happy with. (The value for the feather you will need to change depending on the size of the text.)
Finished, this effect works great, and looks just as good. You can put a slant to the relflection by going to edit > transform > perspective and dragging one of the middle nodes to the left or right.
