Open a picture you want to apply the transparent effect on. I am using a photo from a Comstock Inc's CD.
Click on the Text tool and type some text using a thick font. I used Stencil size 30. The fill color does not matter because we are going to make it transparent. Set the stroke to null . Once you have your text on the canvas drag the text up to the left hand corner of the canvas.
Click the Filters button and click Bevel and Emboss and select Raised Emboss. Set them to the following setting. Make sure you uncheck the Show Object box:
Here is my final product: