Chipped Type

1

Create a new image, and use the Type Tool  to create some text. If you are using Photoshop 5.0 or later, right click on the T icon on the text layer, and select Render Layer. 

Next, holding down Ctrl, click on the text layer to select it's transparency. 

Press Q on the keyboard to enter Quick Mask Mode.

2
Press Ctrl+I to invert the mask. 

Now, in the menu go:
Filter > Pixelate > Crystallize... 

Crystallize by 10 pixels, and hit OK.

3
In the menu, select:
Image > Adjust > Brightness/Contrast... 

Drag the Contrast slider to 96, and Brightness to -75 and hit OK. 

Press Q, on the keyboard, to exit Quick Mask Mode. 

In the menu, go: Edit > Clear 
Deselect Ctrl+D.