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Photoshop Tutorials » Text » Layered text 
12. Now select your Eraser tool from the tool palette using a any brush would you like, and partially erase the top text layer as shown fig. below.

Now, show the top layer by enabling the eye icon again, you will now see the top text layer, the bottom layer hidden underneath.

(Note I am using CS2, could be part of my problem.)

DOWNLOAD THE PSD FILE

as we reach the end of STEP 7, i've got all my type layers in a group (folder) and my letters are looking great!

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