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It's not worth visiting hell without the promise of heaven on the other side. (Tom McShea)
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Create a new file and some text to go along with it. For your viewing pleasure during this tutorial, we will use a blue representation of hexidecimal #336699, R: 51 G: 102 B: 153..

Control + Click on your type layer to load the selection. Create a new layer and on the new layer, access Select > Modify > Contract > 6 pixels. Layer > Rasterize > Layer comes next.

Select white as the foreground color and fill your selection. Control + D to deselect. Filter > Blur > Gaussian Blur > 8 Pixels, repeat using 4 pixels and finally, repeat once more using 2 pixels. Lower the opacity of the layer to 50%, click on the layer menu and change the blending mode to Color Dodge. Make sure you unclick the "R" (red) option. Finally, Control + Click on the layer to load the selection.

Switch to Channels mode. Click on the Save As Selection button and then click on the Alpha 1 channel that has been created.

Repeat the earlier Filter > Blur > Gaussian Blur settings, first at 8, then 4 and finally, at 2. Return to the Layers palette, create a new layer and move it to the top of the palette. Select the new layer and fill it with black.

And now the real fun begins---go to Filter > Render > Lighting Effects and use the following settings: Gloss: 75, Material: -36, Exposure: 56, Ambience: -100. Make sure the Texture Channel is set to Alpha 1 and click okay. Create a directional light, setting of 32. For the finishing touch to this step, Filter > Blur > Gaussian Blur > 3 pixels.

Image > Adjust > Curves is next. The settings above work well.

After the curves are properly applied.

Use a drop shadow at the default settings, with the blend mode set to Multiply. Then, Inner Shadow with these settings: angle of 80, color of white and using the Quality Contour of "Cone."

A final Gaussian Blur using a setting of 2.0 and you're done.
Imagework Examples:

"popping" out at the beach

chateau watercolor "painting"

waterdrops--no rain required