Step 1
First open a new document and write some text you want to apply the effect to. I made my text black.
Step 2
Ctrl+click this layer to get the selection of the text. Create a new layer and goto Select>Modify>Expand and set the amount to 3. Now fill in this area with white. Place this layer behind the layer with black text.
Step 3
Double click this white layer to get to its Layer Style. Give it a drop shadow. Opacity 75, Angle 120 degrees, Distance 5, Size 10.
Step 4
Now apply a Gradient Overlay Style from the same Layer Style Menu. Change opacity to 55%, Style to Linear, and angle at 90 degrees. Click the gradient bar to get to the Gradient Editor. We want to have 2 white bars at the left and the right and 1 black bar in between. We want the black left pole to be at 80 and the right black pole to be at 20. See picture for details.
Step 5
You should now have something like this.
Step 6
Make a new layer and grab the pen tool and make a selection of one of the letters. Make sure you don't make a selection of the entire letter. You want only the bottom half of the letter. Fill it in with any color. It doesn't have to perfect either.
Step 7
Double click this layer to get to the Layer Style Menu. Give it a gradient overlay. Accept the default black and white settings. (Note: if your letter isn't black then you may need to change the black color on the gradient to match the color of your letter.) Press okay on the menu and change the layer's opacity to 17%. Do the last 2 steps for each letter and you're done.
Final Result:
