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I am trying to create block letters where it gets darker at the top of the letters like the image below.

What is the best way to create these type of letters in Photoshop? I am currently running Photoshop 7.

enter image description here

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Wouldn't that just be converting text curves into a selection? –  Ignacio Vazquez-Abrams Nov 15 '11 at 12:33
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up vote 4 down vote accepted

Double click the text layer, go to Layer Style. You can accomplish the effect in two ways:

1) Bevel and Emboss - just click this and adjust the angle and size parameters.

2) Gradient Overlay - you will need to do a bit more work, but this is more customizable.

You'll also probably want to add a border and a drop-shadow like the reference image you provided for additional effect.

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