1. Begin with a new file, with white as background, then take the Text Tool and type in your text.
2. Then go to the layers palette and right click the text layer and chose Blending Options and do this settings.




And you are done!
This is what i came up with.
Below is another example with the same effects I have only changed the background color and the text color.

10 Random Photoshop Text Effects :
10 Random TutorialKit Materials:












More Photoshop: