Displacement Map

I started by clicking on the channels palette and choosing the red channel. Then, I duplicated the channel. Next, I created a new document and added a .7 Gaussian blur by going to Filter>blur>Gaussian blur. Then, I saved this new document. Going back to the original image, I clicked on the "RGB", opened the layer palette and added text on a new layer. Then, I rasterized it by right clicking on the layer palette and choosing rasterize test. Then, I went to Filter>Distort>Displace. Next, I opened the image that I saved before.  I chose overlay mode and duplicated the distorted layer. Then, I added a inner shadow and dropped the opacity of the second layer to 30%. The hardest part of the assignment was remembering how to add the inner shadow, and the easiest part was adding the text. I really liked the way the image turned out. I think this was a good tutorial.