A beginner's tutorial about how to round squared text and objects in Photoshop 4/5.
Create a new channel and draw your shapes, or place your text in the center. Leave at least 10-15 pixels on each side.
The Levels Manipulation
Image > Ajust > Levels...
Grab those sliders and pull them in real close together, creating a nice hard edge to the blur.
Drag your channel right onto the Channel Selection button . Create a new layer, and fill it with the color you want.
(Fill with Foreground Color by pressing Alt-Backspace)
For added effect, create another layer under your rounded object. Make the Channel Selection again; expand it by 2 pixels and fill with another color.
|HINT: Use this technique on boxes and other square shapes for the same effect.|