How to create embossed or beveled text?

Since everyone else told you how to do it with Elements and you have both Elements and Photoshop, I'll tell you how to do it in Photoshop. This was done in CS3. FYI, the dialog is exactly the same except in CS5 the user can set a default stroke color preference.

1. Type out your text.

2. Click the FX button on the bottom of the layers palette and select blending options.

3. Drop the "Fill Opacity" slider to 0%. (Notice in the example below that the text has disappeared.)

4. Click on the tab for Bevel and Emboss...use the options in this panel to set up how to bevel and emboss your text.

Note: Fill for text layer could have been changed to 0% Fill in the layers palette but since you were going to be in the layer style panel anyway I gave directions to do it in that dialog.

1. Enter text on new layer.
2. Cltrl-click text layer to select text.
3. Activate background layer.
4. Copy selection, add new layer above backgound layer, paste selection
         or
     Layer>New>Layer Via Copy
     This creates layer 1.
5. Turn off visibilty of text layer, or delete it.
6. Add Low Inner Shadow layer style to layer 1.
7. Adjust selected text with Levels, Hue/Saturation, etc.
8. On layer 1 adjust the style settings (lighting, shadow angle) to get engraved or embossed look.

embossed:

recessed:

Here are a few tutorials:

http://graphicssoft.about.com/od/pselements/ss/seethrutext_4.htm

http://www.alibony.com/pse/073108text-fill.html