| Choose the Text tool and create some text. Make sure in the Text tool palette that Floating is checked. I used a dark blue color for the normal state of the button text. A new "temporary" layer is created called Floating Selection. Click on the "Text 1" layer. Go to Effect>3D Effects>Cutout. Set vertical and horizontal to about 2. Set transparency to about 75 and blur to about 6.5 and color to black. Go to Effect>3D Effects>Drop Shadow. Set horizontal and vertical to 1. Set transparency to 100 and blur to about 6.5. Set color to white. You now have a carved effect for the up and normal states of the first button. Go to Selections>Promote Selection to Layer |