Photoshop Tutorials » GaussianBlurBorder Tutorial

Step 1 - Starting Out
Open a random image source that you want to apply this effect in. I'll use Malcolm from UT2007. Duplicate the layer once so you have two layers. Step 2 - Rectangle Marquee Tool
Click on the top layer of the image. Select the Rectangle Marquee Tool and make a nice rectangle like the one in the image. Right click the Marquee selection, and hit "Select Inverse." Then hit the Delete (DEL) key on your keyboard. This will remove the surround image from that layer. Step 3 - Applying the Gaussian Blur and Stroke
Right click the selection once more, and hit "Select Inverse." This will make it go back to the normal rectangle you made in the beginning of step 2. Now go to Filter»Blur»Gaussian Blur and apply a blur with a nice strength (Don't overpower the blur, just enough to make it feel nice. Right click the layer, and go into the "Blending Options." Click on stroke, and then change the settings to a dark gray color with the size of 2px. Step 4 - Text
When making the text, it is best to match the surrounding image. What I do is click on the foreground color square so the "Color Picker" window comes up, and then click on a color in the image so it can "suck it up" into the pallete. I do the same with the opposite color by pressing X on the keyboard, but using an alternate color instead. Then I type the text, and give it a stroke relative to the one on the border. Your colors may alternate on the image your using, but it should look good nevertheless. Enjoy the new effect. End! Job well done!

Photoshop Tutorials » GaussianBlurBorder Tutorial