1. Add yr text onto a plain background (the colours of your choice). To achieve the best effect use this font at size 8 pixels. For this tutorial I am going to write STARMONKEYDESIGNS.



2. While the text is still selected (like above) go to Selections > Modify > Expand. With the setting at 1 click ok.
3. Now go to Edit > Copy. Next, paste it onto your button just like this: