Text Options Vector Vs. Raster

Create a new image: Go to File || New (Ctrl+N):
Width = 200 pixels
Height = 200 pixels
Resolution = 72.00 pixels/inch
Background = Raster Background
Color Depth = 16 Million Colors (24 Bit)
Transparent = checked

Click on the Text tool (T). In the Tool Options palette, make sure that:
Create as = Vector, and
Stroke width = 0.0
Choose a Font and Size you like. I chose Stencil Size 48.

In the Materials palette, set the Foreground Material to Null and the Background Material to a color, gradient, or pattern you like.

Click into the image to open the Text Entry dialog. Type in your name or any word you want. I typed "Text". Click Apply to place the text on the canvas.

You should have a red dashed rectangle around your text with little red boxes because Vector was selected in the Tool Options palette. You can left-click on the boxes around the outside, hold down the button and drag the box to resize the text. The little box inside will let you rotate the text. The circle in the middle will let you move the text.

You can accomplish almost the same thing with a raster layer using the Deform tool, but you may get some distortion if you used a pattern. Vector layers allow resizing without any distortion because they are "drawn mathematically" instead of resizing pixels like a raster layer. Resizing is just one of the features that makes vectors much better to work with than rasters. Let's explore some more.

The Object Selection tool (O) and the options on the Object menu only work on vector layers. For some of the options you need to have multiple vectors selected. There are all kinds of neat little features you can use such as Align, Distribute, and so on. You will need to come back and experiment with some of the features. Lets return to the vector text.

Let's make some changes. Click on the "+" sign beside the 'Vector 1' layer in the Layer palette. Right-click on your text layer and choose "Edit Text" from the pop-up menu. The Text Entry dialog box will pop up with the text already selected (highlighted).

With the Text Entry dialog box open and your text selected make some changes in the Tool Options palette. Try to change the Font and/or Size. If you had several words and decided to change one of the words or letters you can select just what you want to change in the Text Entry dialog by using the mouse or holding down the Shift key and pressing the arrow keys to select what you want.

To add an outline to our text, in the Materials palette, set the Foreground to a Color, Gradient, or Pattern of your choice. Then in the Tool Options palette, change the Stroke Width to at least 1.00 or 2.00 depending on how big of a outline you want. Click on Apply.

Lets jazz it up some more. Right-click on the text layer in the Layer palette and choose "Convert Text to Curves || As Character Shapes from the pop-up menu. If you click on the little plus sign that is now in front of the text layer you will see that each letter is on its own layer now. This opens up all kinds of possibilities.

Double-click on one of the letter layers in the Layer palette by right-clicking on it and choose Properties from the pop-up menu. Try to change the Stroke, the Materials, or whatever you want until you get something you like.

Do the same thing to all the letters, choosing a different pattern each time. Just play around and see what you can come up with that you like. Here's what I came up with giving you some kind of idea of what you can do using the Vector Properties dialog.