Question?

How do you make the color go throught the letters like in this icon?



I use PS7 and Image Ready.

Also, I have a question about the lasso command. If you want only a section of a pic and want to move it to another layer to add a template what do you do? Someone just recently did this but I didn't understand.

I'm sorry if I have asked a question already asked. I couldn't find anything for the color one though.