Simple Letterpress Effect in Photoshop - How To

10 Steps.SG has a sweet tutorial for making a simple Letterpress effect on text.

My Notes:

Place a paper background into Photoshop. Type text.

On the Text Layer
   Layer > Layer Style > Inner Shadow. Blend Mode > Multiply. Opacity 85. Angle 118. Check Use Global Light. Distance 2 px. Choke 0. Size 2 px. Check Anti Aliased.
   Add a drop shadow that's a few shades lighter than the background. Layer > Layer Style > Drop Shadow. Blend Mode > Normal. Opacity 100. Angle 118. Check Use Global Light. Distance 1 px. Spread 88. Size 1 px. Check Anti Aliased. Check Layer Knocks Out Drop Shadow.
   Layer > Layer Style > Bevel and Emboss. Style > Emboss. Technique > Smooth. Depth 1. Direction > Down. Size 0. Soften 1px. Angle 118. Check Use Global Light. Altitude 30. Gloss contour. Check Anti Aliased. Highlight Mode > Screen. Opacity 75. Shadow Mode > Multiply. Opacity 25.
   Layer > Layer Style > Pattern Overlay. Blend Mode > Divide. Use a paper pattern. Opacity 80%. Scale 100%. Check Link With Layer

Design Panoply has a similar tutorial but the settings are slightly different.