Embossed Text
This effect tends works best on wide text.
  1. Create a new image set to 16 million colors OR work with an existing image.
  2. Add a new layer and flood fill the new layer with white.
  3. Using the text tool, enter some text light grey in color:
    Red: 192
    Green: 192
    Blue: 192
    Check 'Floating', and keep the text selected.
  4. Save your text selection to an Alpha Channel (Selections|Save to Alpha Channel).
  5. Deselect text and emboss. (Effects|Texture|Emboss)
    Variation: For a softer embossed effect, apply a Gaussian Blur at .5 after the emboss.
  6. Load your selection from the Alpha Channel (Selections|Load from Alpha Channel).
  7. Expand your selection by 1 (Selections|Modify|Expand), or experiment with no expanding the selection.
  8. Invert your selection (Selections|Invert), then hit the delete key.
  9. Invert your selection again.
  10. Contract your selection by 2 if you didn't expand the selection in step 7, or 3 if you did. (Selections|Modify|Contract)
  11. Flood fill the inverted selection with your text color or pattern.

    Source: Web Graphics On A Budget