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Open a new image to fit your text, use black as text color and a white background.
Use Image/Other/Erode do this twice or enought to give some thickness to your text.
Use the Retouch Tool/Smudge with settings; Shape=5, Shape=Round, Opacity=70, Texture=None, (experiment). Now make sweeping motions up and down across the image.
Now apply the same text settings again. This time choose white as foreground color for your text. Line the text up over the smudged image, and select none.
Now you can go several directions from here...

 

You can choose Colors/Colorize settings; Saturation=255, Hue=whatever, I used first Hue=25.
The second image I used Hue=~150.
Then choose Colors/Negative Image.
The third image I did not colorize I just applied Colors/Negative Image



or...
From Chuck Dale's Tutorial page use his eld.pal file.
Then convert image to grayscale by Colors/Greyscale, then Colors/Load Pallete. Make sure that Maintain Indexes is choosen.

Chuck Dale's page is no longer posted, if you are having trouble downloading the eld.pal zip here please email me and I will send it to you.
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