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Open a new window large enough to contain your text, but don't get
too carried away or your image will take too long to load on the web.
I used a new window of 175 x 75 with a white background. This text is
created directly on the background layer, with no additional layers
being added.
Select your text tool from the Tool Palette. In the text dialog box,
check anti-alias and un check floating.
(If the selection marquee that surrounded your text has suddenly disappeared, and your text along with it, you have most probably deselected the selection. Press CTRL + Z on your keyboard to undo the de selection. If this doesn't work, you'll have to start over.
Add a cutout. Select Image | Effects | Cutout from the
menu bar. In the cutout dialog box specify the following settings:
Without de-selecting, apply a deformation to the text. Select
Image | Deformation | Punch from the menu bar. The
dialog will give you a text box to enter the strength of the
deformation. Make your own choice here, what-ever tickles your
fancy. I used 50% simply because it was there and I didn't have
to enter anything.
Again, do not de-select. Go to Colors | Colorize on the menu
bar. Adjust the Hue to 0,(zero); the Saturation
to 184.
Add a Drop Shadow and you're done!
For a quick, and totally cool chrome effect add a hot wax coating to the
selected text area, using white as your foreground color on the color palette.