Ok, lets start a new document size around 700px by 500px.

Press "D" on the keyboard to reset the color pallete to black and white.

Then go to Filter » Render » Clouds

Now choose your "type" tool and type in your text.

Choose a bold font, and make it BIG, I chose IMPACT font and size 240px.

Now we need to load the text as a selection. Move your mouse over the "T" icon of the text layer in the layers pallete, then hold down CTRL and click on the icon. this will create a selection around the text.

Now you need to delete the text layer, just right click on the text layer, and choose "Delete Layer", this will leave you only the background layer with the cloud filter, and the text is gone, just the selection of the text.

Now go to Select » Feather and enter 10 for radius.

Note: i enter 5 for this image, but if your text is smaller, use a smaller value.

Now go to Filter » Render » Difference Clouds.

Press CTRL+F two times to reapply the filter.

Now you can deselect the selection, press CTRL+D

Now go to Filter » Stylize » Glowing Edges.

Width: 5
Brightness: 7
Smoothness: 8

Apply Filter » Artistic » Plastic Wrap

Highlight Strength: 10
Detail: 9
Smoothness: 3

Press CTRL+F to reapply the filter. Depending on how much details/guts you want on it, you can press CTRL+F several times to reapply the filter.

Now to colorize the image, go to Image » Adjustments » color balance.

Shadows: [ +80 ] [ 0 ] [ -25 ]
Midtones: [ +80 ] [ 0 ] [ -25 ]
Highlights: [ +80 ] [ 0 ] [ - 25 ]