How to create Creepy Text:
1.) Click on File and then click New and then type in a size and then OK. (I used Black=Background and Green=Foreground.)

2.) Click on the Text Tool and then Choose a font that is large and not so delicate-it looks better! and type in your text and then OK. Then click in you image to place your text in your image and now we are going to start smudging.

3.) Click on the Retouch Tool with the following settings:
    Retouch mode=Smudge
    Size=2
    Shape=Round
    Opacity=100
    Paper Texture= doesn't matter
and move the mouse pointer to the bottom of a letter and then while holding down the left mouse button then drag a piece of the text strainght down in a horizontal motion. I sometimes shake the mouse back and forth while dragging it downwards to give it a roaming drip effect.

NOTE:You can experiment also with the different settings for the Smudge option of the Retouch Tool. The larger the Opacity setting then the longer the smudge effect. The Size of the smudge will also effect the length of the smudge and also the width of the smudge. With smaller text you will want to keep the Size down around 2 and Opacity to 100.

Add a Dark Red halo (See title header above) in back of the letters for a real scary effect:
1.) Click on the Text Tool and used the same font and font size and using dark red as the font color click on your black background.

2.) Click on Image and then click Normal and then click Blur More and repeat this about 3-5 times depending on how big of a halo you want.

NOTE:Sometimes I choose to click Image then click Deformations and the click Motion Blur and then I blur the text in all four directions 0°, 90°, 180°, and 270° with the Intensity setting of 2-4 which spreads out red halo a faster but also makes it a little lighter also but try out differet settings for yourself and see what you prefer.

How to Create the Dripping Text:
1.) To create Dripping Text Set Opacity=128, Size=2, and Shape=Round and hold your mouse pointer over a bottom portion of the text and then left click and hold down your mouse button and drag the color down and then drag it left to right like crawling blood.

NOTE:The maximum setting for Opacity is 128 which will never fade out.

2.) The trick to Dripping Text is when you get to the end of dragging your color down, what you want to do is move your mouse in a really tiny circle or actually I do a small U-Turn to create the illusion of a drop of blood at the end.

3.) Next use the Shape Tool set to Oval and Filled and then create the blood drops and puddles underneath the text.