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CREATE WORD ART
To create Word Art in Photoshop is easily done using Blending Options and Warp Text.
For an example, just follow the simple directions and diagrams below.
STEP 1 - To create Word Art, type your words in your choice of font and size using the Text Tool.On the Layers Palette, name your new layer Word Art.
Step 2 - You can create a new shape by clicking on Warp Text at the top of your palette.
Step 3 - In Style, highlight Flag (or your choice of Style) and click to select.
Step 4 - On the Layers Palette, right click on Word Art. In the pop-up box right click on Blending Options(circled in yellow).
Step 5 - In the pop-up menu, select Pattern Overlay.
Step 6 - Click on Pattern Overlay again to open a menu specifically for Pattern Overlay. Select your pattern, and make any other adjustments you desire within that menu.
Step7 - Select Drop Shadow (or any other Style) and click again to open the box to modify that style. Each of the styles I selected (Drop Shadow, Inner Shadow, Pattern Overlay and Stroke)are underlined in color.
Step 8 - In order to create your word art as separate from the palette, select the Crop Tool(the arrow is pointing to it on the diagram). Use it to outline your artistic word(inside the yellow circle on the diagram). Select the Move Tool(it looks like a cross)and click OK. Save your Word Art in your graphic file, and you can now paste it into any graphic or picture document.
Upcoming Attractions below is another example of a way to create artistic words.

For another example of a way to create Word Art you can follow this link.
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