Step1: Chosse your font, size and color.
Step2: Type your word.
Step3: In your layers palette, Apple+ click your type layer to put the "marching ants" around the text. Create a new layer.
Step4:Go under the select menu, under modify, and choose contract. WHEN the contract dialog appears, eneter 2 pixels, and click OK, then press Option+Delete to fill you contract section.
step5: Deselect by pressing Apple+D. Duplicate this lat=yer by dragging it to the New Layer Icon. Go under the filter menu, under blur and choose Gaussian Blur. When the dialog bow appears, enter 3 pixels, and click OK.
Step6: Choose Bevel and Emboss from the layer style menu at the bottom of the layers palette.
->Styles=Emboss
->Depth=300
->Size=12
->Highlight Opacity-40%
->Shadow Mode= Color Dodge
->Black Color swatch
Click OK
Step7: In the layers palette Click on the eye icon beside the background layer to hide it. Then choose merge visible from the palette drop down menu. Choose Drop Shadow from the Styles menu and click OK. Click on background layer to reveal it.