This animation is actually very easy. Just that you need the patience and the time to do it. My image size was 127x27. Using the Text tool make some text, any color you want.

Now use the glowing text technique I have in my previous tip. If you use the EyeCandy3.0 Glow filter, it won't be as nice, but it still works. Use your Text tool and make another text. Exactly the same as the one you glowed, but make it the color of your background, and put it directly on top of the glowing text.

Save the image as a .PSD with all the layers intact, do NOT change to indexed color or anything, leave it in RGB mode. After you do that, go to File> Export> Gif98a Export. Then choose different settings if you like, then save it.

Now you need to go to the Glowing Text layer in your layers tab. Make the opacity 80%. Now Gif98a export it, and save it under a different filename.

Repeat step 4 again, with 60, 40, 20, and 1% opacities, and save them each under a new filename.

This is the last step, compiling all the images and animating them. A GIF animation program is needed for the following steps, you can use Gif Movie Gear for example. There are several Shareware Demo's that are available for download. The Gif Movie Gear shareware version is located here.

In your GIF Animator, insert your images in order of how you created them. For instance, I named my files animation1.GIF, animation2.GIF, etc etc. So I put them in number order, then count back down to one, that makes it fade out, and fade back in. So it would be, 1,2,3,4,5,6,5,4,3,2,1.

I made the wait time between each image 10ms. But the first image, I made it 50ms, so you can read the text before it fades away.