Welcome to Priya's Paradise
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I am using Photoshop CS2.This tutorial works for other versions too with little variation
Another neat effect to add some beauty and depth to your graphic.
First open a new document.something with dark background.and type your text and add some effects to it.(want to learn about the stroke effect which you see around the name go to my stroke tutorial)

Now go to Layer >> Layer style >> blending options or right click on layer and select blending options.
A pop up will appear, select these settings.you can play with the settings to your hearts desire.

And you will end up with this neat effect.

If this tutorial helped you.Please do link me:)
