1. Create a new document, size doesn't matter.
2. Create a background, for example:
3. Write a text, I used font called "Trajan Pro", it's default font in installed Photoshop.
4. It sucks… Go to blending options of text layer.
5. Ok, let's manipulate with settings:
Drop Shadow
Outer Glow
Bevel and Emboss
6. Better, now select whole text, and click here, for the paragraph and character palettes:
7. Change letter spacing to "-180".
8. Select only first letter, and make it bigger than the rest.
9. Let's modify other parts of the word. In my art "Pure Photoshop" I want to make word "Shop" a little bit special. Select only "Shop" and go to paragraph and character palettes. Play with settings, I've used "Faux Italics", reduced letter spacing, made it "Superscript", and made it a little bigger. All settings are on the screen below:
10. Duplicate your text later by pressing Ctrl+J on your keyboard and move new layer just under base one.
11. Press Ctrl+T to modify copied layer. We can see new options on upper bar. Click the chain icon to keep ratio and change width to 135%. Change opacity of this layer to 10%.
12. You're done! It's simple but elegant, ideal for headers etc.
More Tutorials: 
