Icon effect?

I use Adobe PS Elements 2.0, and I was wondering if anyone could tell me how to make these little glittery circles featured in this icon: (I believe this is the work of _coquettish or ashke_icons).

Also, how do you put a shadow behind your text? Whenever I use the Drop Shadow option from the Layer Styles tool, the shadows are never close enough to the text.

Thank you in advance to anyone who can help.