Step 1

Create a new document, Make it the size you want to suit for text size. don't go over a 100px

Set your foreground color to gray, And type your text, Use whatever style of text you want. (Size of background- 800 by 600 )(font used-Boulder) what I used Once your text is competed, Ctrl- and left click on the text layer.

That should make a selection of the text, now duplicated the text...( how to duplicate) We now need to rasterize the duplicated layer.. (how to Rasterize) Do not deselect until I let you know :)

Step 2

On the rasterize layer, ( with layer still selected) we will add some filter....Go to filter-blur- Gaussian blur. set the blur to 4pixel and click ok. Next filter--Go to filter-render-lighting effect-View Settings

Go to Image-Adjustment-Curve- View my curve- try and set it to look as 3d as possible.

Step 3

With Selection still selected around your text, Create a new layer and fill the selected text with white. Once its filled with white change the foreground color to black. Go to Filter-Texture-Stained Glass. And apply the same settings.

Step 4

Try and select the white color . Using the eyedropper. It shoud look like this if you did it right Go to select- color range and I try your best to click o the white. Once you click on the white line you should have the 2nd image to the right.

Step 4

Click on Ok with your image on the stage still selected,Click delete and you should have the image you see below. I hope you got it.

Step 5

With the same layer selected, go to Layer-Layer Styles-Blending Option. And apply the settings as shown.

Step 6

Select the second layer from the top and add colors, Go to Image-Adjustment-Hue/Saturation.

Step 7

Once you apply the color, this should be your final result.

See Video Tutorial for added help