Open a new file, 400 pixels wide by 150 high, 16 million colors, with a white background. Select as your foreground color a light blue, such as RGB 111, 225, 225. Add your text. Here I've used a font called Unicorn, 55 point. I like to use a font with rounded edges for this effect.

Go to the Selections menu, Modify: Feather. Use a setting of 4. You should see the selected area move out from the edges of your text.

Now give your text a Hotwax coating. This is the first step in giving your work a three dimensional look.

Deselect your text by pressing Ctrl-D. Then select the inside color of the letters by clicking on them with the Magic Wand. Use a tolerance of 35, and remember to hold down the Shift key as you click on each new area. Go to Special Effects:Cutout. Set the opacity to 100, the Blur to 4, the shadow color to RGB 202,244,255, and the horizontal and vertical offsets to -6.

Set the foreground color to RGB 202,244,255. Now we apply a second hotwax coating. This gives a very nice shine, but is a bit dark.

Next we lighten the highlights up a bit. Go to Colors, Adjust: Hue, Saturation, Lightness. Set the Saturation to 100%, and the Lightness to 40.

This looks pretty good, but I think it needs to have much brighter colors. Using the Area Select tool, draw a rectangle around your text, and go to the Color Menu, Adjust: RGB. Set the Red and the Blue to 100%, and the Green to 0.

The final step is to sharpen up the graphic. Go to the Image Menu, Sharpen: Sharpen. Now select the white area around the text with your Magic Wand (the tolerance should still be about 35). Don't forget to hold down the shift key and click on any areas inside the letters. Finally, use your Flood Fill Tool to color the background some neutral color (I used green) and save as a transparent GIF

Many variations are possible with this technique, by changing the colors, the RGB settings, etc. For example, the text below was created by substituting RGB 255, 87, 87 for the darker blue, and RGB 255, 164, 164 for the lighter shade.