Sandstone Raised Text Effect
Resources:
Old Grunge Paper Texture 4 by FudgeGraphics
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This will be the end result:

Start with a new file, 800 x 500px, 72px resolution
Open the Old Grunge Paper Texture 4 from FudgeGraphics.
Image>Rotate Canvas>90°CW.
Image>Image Size – set the width to 1000px – auto height.
Use the rectangular marquee tool to select all the paper but none of the white edges.
Edit>Copy, then make your blank canvas active, Edit>Paste (or Ctrl + C and Ctrl + V)
Select the text tool and using a heavy font – I used Boulder – set at around 150px, black, type your required text.
Right click on the text layer in the layers palette and select Rasterize Type.
Filter>Stylize>Wind – select Wind and From the Right, click OK.
Filter>Wind (which should be at the top of the drop-down box, to repeat the last step)
Filter>Stylize>Wind – select From the Left, click OK.
Filter>Wind
Now double click on the text layer in the layers palette to bring up the blending options, and apply the following Inner Shadow, Outer Glow and Bevel & Emboss settings:



Create a new layer above the text layer and select the custom shape tool. Use the following settings:

Select white as the foreground colour and draw lots of lines across the text – they don’t have to be straight

Filter>Blur>Gaussian Blur – set to 2, click OK
Filter>Noise>Add Noise – set at 42% and Monochromatic checked, click OK
Ctrl+click on the thumbnail of the text layer to select the pixels, then making sure the lines layer is active, Select>Inverse, then hit the delete key.
Set the layer mode to Overlay.
Create a new layer below the text layer, then Ctrl+click on the thumbnail of the text layer to select the pixels, and with the new layer active, and making black the foreground colour, Select>Modify>Expand – set to 15. Edit>Fill>Foreground Colour.
Do not deselect.
Create a new layer above this layer, then select the line tool again, with the same settings as before, but set the weight to 3.
Make white the foreground colour, and once again, draw lots of lines across the selected text.
Filter>Blur>Gaussian Blur – set to 2, click OK
Filter>Noise>Add Noise – set to 42% with Monochromatic checked, click OK
Ctrl + D to deselect
Ctrl+click on the thumbnail of the original text layer to select pixels. Make the expanded text layer active, and hit the delete key.
Turn off the visibility of all layers except the expanded text and the lines layer above it, right click on one of the visible layers and select Merge Visible
Change the layer mode to Soft Light.
Select the Smudge Tool, with a soft brush 13px, mode: Normal, strength: 71%, and go around the edges with a small circular motion to soften and blend them. Also blend any gaps between the letters.
Duplicate the Paper Texture layer, and drag the duplicated layer above all other layers. Set the layer mode to Linear Burn.
Finally crop the image to the required size.

The Finished Project
