Fire Text

Start a new document and fill the background with black. Select the type tool and create a white text.

Apply the Gaussian Blur to the text layer (Filter > Blur > Gaussian Blur ) Click OK if it ask you to rasterize. Set the raduis to around 2.0 - 3.0

Now to create the flames, select the smudge tool and choose 17px soft brush. For strength, select about 80% - 90%. Check the "Use all layers" checkbox.

Click on the to open the Brush pannel, and apply the following settings:

Now create a new layer, then smudge the top of the letters and other areas to create a flame effect.

Click on the Adjustment Layer button at the bottom of the layers pallete and select Color Balance.

Use the following Settings:

Midtones: Red= +70. Yellow = -70
Shadows: Red= +70. Yellow = -70
Highlights: Red=+70. Yellow = -20

You can experiment with these value to get better results.

Now, create a new text layer on top of that fire layer using exact same font and size as you did in the first step, but this time, use black for the color. Place this text layer on top of the fire.

Set the new text layer's blending mode to Overlay.

Your done! Play around with the blending mode and opacity for more cool effects.