1. Begin with a new file, 400x400 with any foreground and background you want. Then type in your text, when you have done that right click the layer and chose Duplicate Layer, then go to Edit>Transform>Flip Vertical.
2. Now should you have 2 text layers and one is upside down, select the upside down layer and go to Layer>Rasterize>Type
3. Then chose the Rectangular Marquee Tool (M) and do as the image shows.
4. Go to Select>Feather with 8 pixels, then press delete one time.
5. Change that layers Opacity to 50%. Now should it look like the image below shows.
6. Take Elliptical Marquee Tool and draw a circle as the image below shows.
7. Create a new layer in the layers palette, in the new layer right click inside the circle and chose fill>Color #000000 (Black). Then go to Filter>Blur>Gaussian Blur 2. Now move the black layer below the two text layers and change the Opacity to 30%.
And you are done!
This is what i came up with.
Below you have some examples with different background colors.
