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Creating Fire Text

In this tutorial we'll create a fire effect on text using liquify filter. Liquify is a great filter to achieve fluid effects.

Start by typing "thefirewithin.com". We'll add fire effect to "FIRE". This will serve as a nice logo for a website header.

Duplicate this layer. Right click and select rasterize layer.
Using rectangular marquee drag a rectangular selection over "FIRE".

Switch on preserve transparency on top of the layer window for "FIRE" layer. Create a yellow to orange to yellow gradient and apply on "FIRE". We used radial settings.
Press CTRL + J to isolate "FIRE" in a new layer. We'll apply liquify filter to this layer to create flames.
From filter menu select liquify (Shift + Ctrl + X ).

Select turbulance tool and adjust brush settings as shown. Drag this brush upwards from top portion of the "FIRE"

This will create random flames coming out of "FIRE".