In this tutorial I will show you how make an Inner Glow (from edge, there is also a variation: from center).
01. Start with your text, i used a black canvas of 600x280px and the font is Sans Bold 160px, Spacing -29 in grey #808080
02. Alpha select your text and save it to a channel (we will need this later): 'Select' -> 'Save To Channel'
03. create a new transparent layer on top and name it 'Inner Glow'
04. Alpha select your text, or use your saved channel and choose 'Channel To Selection' (same thing)
05. depending on how big you want your Inner Glow, Shrink the Selection or leave it as it is
06. then Invert Selection!
07. fill with color - i used white, and Gaussian Blur - i used 16px - no shrink
from my experience the Blur will have a range of approximately half its pixel value - so a Blur of 16 will spread about 8px inside your text selection - but thats just a rule of thumb
08. now almost all of your canvas has the color of the Inner Glow, minus the bit inside the selection, where the text is
how can we know if we like what we did, when we cant see the final Glow properly ?
here is a trick: go to your saved channel and turn up the 'Fill Opacity' to 100% and then turn on the channel by clicking on the eye
now everything except the text will be black (because the default mask color is black)
we can even change the color of the channel mask, by clicking on the colored rectangle, in case we have a black BG and black text
so for the sake of this tutorial, i changed the mask to green.
now you can see how your final Inner Glow will look
when you are happy turn of the mask - if not 'Undo' and apply other values of Shrink selection and Gaussian Blur, till you are satisfied
09. now we want to get rid of everything on the Inner Glow Layer except for the glowing shine thats inside of the selected text
10. so we Alpha Select the text or or use the Saved Channel and choose 'Channel To Selection'
11. Invert Selection
12.
a) Edit -> Cut
orb) apply a LayerMask 'Selection' + 'Invert Mask'
orc) for the quick bunnies among us: dont select your text at all - choose LayerMask -> Channel
13. play with Layermode and Opacity - the Mode 'Screen' is the obvious choice for light colors - or leave it as it is
14. to finalize the piece i added a shadow to the text (the base text selection filled with black and blurred by 5) and a gradient to the background. Also i tweaked my glow with a curve so that it expands a bit.
EDIT: this is a revised version with new improved pictures. and new PDF added in next post