The Final Result:
Notes:
* the software used in this tutorial is Adobe Photoshop CS5 Extended
* the size of the final result image is 1024 * 768
* you might want to check the Basix Page to see some useful topics on dealing with Photoshop basics, such as loading palettes and some shortcuts.
Resources:
* Grungy seamless tiling cement by ~LANBO.
Step 1:
- Set the Foreground color to #dbdbdb, and the Background color to #bcbcbc, then, create a Radial Gradient from the center of the document to one of the corners.

- Create the text using the color #7b7b7b. The font used is Magnum and the Size is 250 pt.

- Duplicate the text layer, and change the copy’s font color to #c91544. Make the original text layer invisible (click the eye icon next to it).

- Right click the copy text layer and choose Convert to Shape.

- This will convert the Text layer to a Shape layer. The thumbnail to the left is the Fill color, and you can double click it to change the color anytime you want to. The thumbnail to the right is the Layer Mask, and it shows the shape of the path that defines what’s visible on the layer.
* Make sure to click the Layer Mask before modifying the path.

Step 2:
- Pick the Direct Selection Tool. This is the tool we will be using to move any points on the path.

- Click and drag to select the anchor points of the first letter.

- The anchor points are the points that control the path. Adding, deleting, or moving any of them will change the shape of the path. Try to add the folds where there aren’t many really close anchor points.

- Pick the Add Anchor Point Tool to start adding the fold’s anchor points. Each fold will need 3 anchor points on each side. The ones to the right and left are where the fold begins and ends (yellow highlight), and the ones in the middle control the actual fold (blue highlight).
Click to add the 6 anchor points on each side. Don’t worry about aligning the points perfectly, you can even leave different spaces between the anchor points to create a more “tilted” fold.

- Pick the Direct Selection Tool once again, click and drag to select the anchor points in the middle (or Shift + Click them).

- Use the Up arrow key (the Move Tool (V) should be the active tool) to move the selected anchor points slightly upwards.
When creating the Horizontal folds, you should move the fold to the Right instead.

- Repeat the same steps to create more folds wherever you want.

Step 3:
- Create two new layers on top of all layers, and call them “Light” and “Dark”. We will be using them to add the gradients to the sides of the fold.

- Set the “Light” layer’s Blend Mode to Soft Light and its Opacity to 30%.

- Set the “Dark” layer’s Blend Mode to Multiply.

Step 4:
- Press Ctrl and click the Shape Layer’s Mask thumbnail to create a selection.

- Pick the Polygonal Lasso Tool and click the Intersect with Selection icon in the Options bar.
Next, create a selection that intersects with the right half (side) of the fold.

- Make sure that the “Dark” layer is selected (active).

- Pick the Gradient Tool, and click the Linear Gradient icon in the Options bar. With the Foreground color set to #dbdbdb, choose the Foreground to Transparent gradient, and fill the selection starting from the middle of the fold.

- The Multiply Blend Mode set previously will make the gradient look like a shadow covering the selected area.

- Select the shape once again (Ctrl + Click the thumbnail), and use the Polygonal Lasso Tool to create a selection that intersects with the left half of the fold.

- Select the “Light” layer this time, then fill the selection with the gradient.

- This will brighten the left side of the fold a little bit.

Note: Try not to include the areas separated by corners in the selection, and avoid dragging the Gradient outside the selection as well.

- Doing so will result in hard disconnected gradient fills.

- Just make sure that the selected areas are contiguous, and that the gradients end near the edge of the selection.

- This will make the gradient fills look more smooth and realistic.

- Do the same for all the remaining folds. Remember, the parts bending up should be lighter, and the ones going down should be darker. Simply, apply the Gradient fills clockwise to all the folds.

Step 5:
- Make the original text layer visible.

- Right click the original text layer and choose Rasterize Type.

- This will reasterize the text layer, which means you will not be able to modify the text anymore. You can use Smart Objects instead if you like.

- Go to Filter -> Blur -> Gaussian Blur, and set the Radius to 2.

- Set the rasterized text layer’s Blend Mode to Multiply. Pick the Move Tool, and use the Arrow Keys to move the text a little bit downwards and to the right, in order to create a simple shadow.

Step 6:
- Double click the Shape layer to add a simple Gradient Overlay. Change the Blend Mode to Soft Light, the Opacity to 60%, and the Style to Reflected. then click the Gradient Box to create the Gradient.

- The Gradient used is a very simple one. Click each one of the Color Stops (at the bottom of the Gradient bar), then click the Color box below, and set the colors to #ffffff and #000000.

- Now, click each one of the Opacity Stops (at the top of the Gradient bar) to set the Opacity values to 0% and 100%.

- This will add a nice gradient to the text.

- Finally, place the Grungy seamless tiling cement texture on top of all layers, and change its layer’s Blend Mode to Soft Light.

That’s it!