Chipped Type

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Create a new image, and use the Type Tool [You must be registered and logged in to see this image.] to create some text. If you are using Photoshop 5.0 or later, right click on the T icon on the text layer, and select Render Layer.

Next, holding down Ctrl, click on the text layer to select it's transparency.

Press Q on the keyboard to enter Quick Mask Mode.

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Press Ctrl+I to invert the mask.

Now, in the menu go:
Filter > Pixelate > Crystallize...

Crystallize by 10 pixels, and hit OK.

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In the menu, select:
Image > Adjust > Brightness/Contrast...

Drag the Contrast slider to 96, and Brightness to -75 and hit OK.

Press Q, on the keyboard, to exit Quick Mask Mode.

In the menu, go: Edit > Clear
Deselect Ctrl+D.]