Now for this tutorial, you can make your text bubbly and smooth, or not do anything to it. Now, let's move along!
I'm going to start off with regular text and I will be using the color #EEEEEE. Make sure when you use your text tool that your CREATE AS option is set to FLOATING.
Once you've applied the text, press CTRL X and then CTRL L so it is pasted as a new layer onto the picture. (The font I'm using is Type-Ra for any of you interested) Then go to Effects > 3D Effects > Drop Shadow and set your settings to mine:
Your image should now look like this:
Now go to your layer palette and set your raster layer to Luminance (L)
Your image and text should now look like this:
You can try this with different colors, raster layers, and you can even add borders to your text! Be creative.