Page 2

With your text still selected we are now going to apply an Inner Bevel with these settings:

Click OK.

Now we are going to give the text the appearance of melting.

Go to Effects>Eye Candy 4000>Melt and use these settings:

(If you are using EC3 you will have to skip this step.)

Click OK.

This is what your image should look like so far:

Now we are going to take the Mover tool and 

move the text to the bottom of the image.

Your image should still be selected.