1. Make a new document any size (larger the better) And fill the background black.
2. Using a small sized font fill the document with words. (copy and paste) And Be sure to “set the leading” so there is minimal space between lines of type.
3. Save document as Decay> Where ever you want. (This will be your displacement map)
4. Open new document any size (larger the better) and fill the background with black.
5. With a large sized font, type words. (I have found VERY large letters produce a smoother and more integrated effect).
6. Now select the Words you just typed and apply>Filter>Distort>Displacement> (click ok when asked about rasterizing)
Use default settings> 10 Horizontal, 10 Vertical, Stretch to fit, Repeat Edge Pixels.
And choose Displacement Map>Decay.
Repeat, repeat, and repeat step (6) the displacement filter, and let her decay.
Final Result:
Larger Letters:
Well, I am a novice at this... so any comments will be appreciated. Thanks,
More Tutorials: 
