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This Photoshop tutorial will show you how to create a moldy text effect. [PSD]
Step 1.
First of all, we're going to prepare the text and create some lumps on it. So, make a new Photoshop document, with dimensions of 270x200 and a dark green background. Create some grey (B4B4B4) text, inside a new layer set called "text", and make a selection using it (image a). Feather (select > feather) and then contract (select > modify > contract) the selection by 6 pixels. Choose white for the foreground color and fill the selected area on a new layer, inside the "text" layer set(image b).
a)   b)
 
Step 2.
Duplicate the the feathered white layer and you should end up with something like in image a). Merge the "text" layer set into a single layer, byt highlighting the set in the layers panel and then by going to Layer > Merge Layer Set. Next, zoom in to 300% and create a new path layer. Choose the pen tool and make 2 points, creating a curve (image b). Drag the right hand side of the directional line to the center point. This will prevent the next point from producing a curve that's out of your control.
a)   b)
Step 3.
The goal, of the rest of this part, is to create a path with some bumps, which we will use to create a shape. Don't worry if the path isn't exactly as in this tutorial. So, create a 2nd curve and drag the directional line to the center again. Continue to create the path, as illustrated in the images below.
a)   b)   c)
Step 4.
Continuing on, you should have a bumpy path, as shown below.
a)   b)
Step 5.
Join the path back to the 1st point and then go to [Part 2]of this Photoshop tutorial.
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