This tutorial will teach you how to make a cool image with a text cutout of it.

1. Make a new image of any size you'd like, I'll use 350x120. Then fill the layer called background with any color you like. This will be the color of the background showing through the area that is cut out. I'll use "#555555" for my background layer.

2. Now, make a new layer and title it "main" or something. Fill it with any color, I'll use "D5D5D5".

3. Next out, add the text you want cut out of the main layer. I'll use a font called "Morpheus" at size 60. Then use "Layer/Merge down" to make the text and the layer you named "main" or something into one layer.

3. Now, it is time to perform the actual cutout. Use the "Magic Wand tool" and press the first letter in the text. Then press delete to remove this letter. Notice that the background shows through. Now do the same thing with the rest of the text.

4. Now add some nice Layer Style effects too the "main" layer. Double click the layer to open the Layer Style setting. I recommend using "Bevel and Emboss" and "Drop Shadow". Play around a little with the layer style until you are happy with the outcome.

5. The final result.