Get a nice graffiti font or one that is bold. Skinny fonts won't look good.

Type out the words you want. Create a new layer and go back to the text layer and select the text using the magic wand and the shift key. If there is something like mine where the outlined in black just select the white part of the letters.

 

Now with the letters selected, go to the new layer and select a gradient. It can be any gradient you like. Its good to use at least three colors in the gradient. I just used a linear gradient and made it vertical. You can be creative with gradients.

 

Now with the letters selected, go to the new layer and select a gradient. It can be any gradient you like. Its good to use at least three colors in the gradient. I just used a linear gradient and made it vertical. You can be creative with gradients.

Merge the text layer and the gradient layer.


Now apply these effects. Of course, change to your situation and colors. You use the stroke to make a outline of the text and use thee outer glow to become another stroke.

You should get something like this.

 

Other Examples:

Discuss the Adobe Photoshop tutorials on the forums. You can find the photoshop files to download there too.