Letter Press typography is very popular at the moment in both web and graphic design. Here's a little step-by-step tutorial that will make you master the letter press effect for sure.
Step One: Create A Document
First things first, create a new document with a 800 X 600 pixels in size and make sure it's set to transparent background.
Step Two: The Background
For the background, I will be using a very regular and simple gray color #7f7f7f, you can just use the Paint Bucket tool (G) and fill your layer out.
Step Three: Adding Text
Now using the Text Tool, type something! I am using a font that you can download for free called Honey Script, with the color #414141, and the size is 200 pt.
Click on the little icon that looks like multiple tabs for more options.
Then match your settings to mine.
Step Four: Drop Shadow
On your text layer, right click and select "Blending Options", then go to "Text Shadow". Match your setting to mine.
The reason I want the drop shadow to be white is because my background is dark, if you want a light background, you can keep the default drop shadow settings but maybe change the size, distance and opacity (shown above).
Step Five: Inner Shadow
Now select "Inner Shadow", and match your settings to mine.
This setting should work fine with both light and dark backgrounds.
So, we are now done with the text.
Step Six: Add A Little Something
Now let's add some effects to our poster. On your color panel, make the foreground color #686868 and your background color #7f7f7f.
Now go to your background layer, and then go to Filter > Render > Clouds.
Step Seven: Some Color Would Look Nice
Make a new layer and place it between the background and the text layers. Now fill it with a gradient of a foreground #d71069 and the background #c61061. And make a line from the middle of the poster to the bottom left.
Set the layer to Overlay.
Step Five: Merge Everything, And You're Done!
Merge all visible layers by right clicking and choosing Merge All Visible.