1. New document, mine is 340x80 but you can have yours larger if you wish.
2. Using the Text tool, type your text in the middle of the document in big letters in the colour #FF0033. For added effect, install this font onto your system and use it. Yahoo Font!
3. Now arrange the text so that some letters are larger than others.
4. Right click on the text layer, and choose Rasterize Layer.
5. Now using the marquee tool, select letters one at a time, cut them out, and paste them (will be on a new layer). Now move them around so they look similar to mine. Try to keep them all spaced out evenly.
6. Merge all letters back into one text layer again.
7. Now duplicate this text layer.
8. Ctrl + Click on the bottom text layer and fill it with black.
9. Now nudge it down one, and right one pixel (by using the arrow tool).
10. Open the Blending Options for the bottom layer and copy my settings for the Drop Shadow.
11. And there you have it! Your own Yahoo! Styled text. Here is my final:
