You can fill type with an image by applying
a clipping mask to an image layer placed above a text layer in the
Layers palette.
Open the file containing the image you want to
use inside the text.
Select the Horizontal Type tool or
the Vertical Type tool in
the toolbox.
Click the Character tab to bring the Character palette
to the front or, if the palette isn’t open, choose Window >
Character.
In the Character palette, select the font and other type
attributes for the text. Large, bold, thick letters work best.
Click an insertion point in the document window and type
the desired text. When you are satisfied with the text, press Ctrl+Enter
(Windows) or Command+Return (Mac OS).
Click the Layers tab to bring the Layers palette to the
front or, if the palette isn’t open, choose Windows >
Layers.
(Optional) If the image layer is the background layer,
double-click the image layer in the Layers palette to convert it
from a background layer into a regular layer.
Note: Background layers are locked and prevent you from
moving them in the Layers palette. It’s necessary to convert background
layers to regular layers to unlock them.
(Optional) In the New Layer dialog box, you can rename
the layer. Click OK to close the dialog box and convert
the image layer.
In the Layers palette, drag the image layer so that it
is immediately above the text layer.
With the image layer selected, choose Layer >
Create Clipping Mask. The image appears inside the text.
Select the Move tool , and
then drag the image to adjust its placement within the text.
To move the text instead of the image,
select the text layer in the Layers palette and then use the Move
tool to move the text.