Note: This tutorial is done by Adobe Photoshop 7.0
1. Open new window with 200x200, white background.
Apply Filter > Render > Clouds
2. Apply Filter > Pixelate > Crystallize Choose Cell size 10%
3. Now go to Image > Adjustments > Threshold and move the slider until you get the image something like mine. You might not get exactly like this but that is ok. Save it on your desktop, give it any name you want I save it as cow_skin.psd :) Then close it.
4. Open a new window with 500 width and 150 height, witha a white background. Type on it anything you like, and try to choose a bold type font with a big size like 70px.
5. Now select your layer with the text and go to Filter > Distort > Displace Choose the fields as shown below.
After you press OK, it will open up a window - Choose a Displacement Map. Here you have to choose the image we have created earlier, in my case it will be cow_skin.psd After choosing you image click OK.
6. And finally here is our displace effect on text. Cool huh!?


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