Now go back to the Layers tab and select the background layer. Fill the background with white for now. You can do this a couple of different ways. The first way is to make the foreground color white and use the shortcut key (Alt/Option - Delete). The other is to choose Edit>Fill (Use: White; Opacity: 100%; Mode: Normal).
After filling the background with white, you need to create a new layer. Choose Layer>New>Layer (Name: blood; Opacity: 100%; Mode: Normal). The New Layer Dialog box settings are shown above right.
Next, select the foreground color to activate the Color Picker Dialog box (right). Make the foreground color red by using the RGB values 128,0,0 and click OK. Fill the 'blood' layer with red by using the shortcut key (Alt/Option - Delete).
Now load channel 'Alpha 1' as a selection by choosing Select>Load Selection (Document: blood; Channel: Alpha 1; New Selection). The Load Selection Dialog box settings are shown at the right.
Next, open the Color Picker Dialog again and change the RGB values to 192,0,0 and click OK. With the 'blood' layer still the active layer, fill the selection with the new red color (Alt/Option - Delete). Remove the selection with the shortcut key (Ctrl/Command - D) or by choosing Select>Deselect from the PhotoShop menu and you will be left with dark red letters on a lighter red background.
For the last part of this step you will need to blur the image a little using Filter>Blur>Guassian Blur (Radius: 4.0). You are going to be using the Plastic Wrap Filter next to create the specular highlights. Blurring the image will create an expanded color range for the filter to wrap itself to. Your image should now look like the one shown bottom right.