Start a new document about 800x300.
Reset your foreground and background color to black and white (Press "D").

Then go to Filter->Render->Clouds.
Select the type tool and create your text. Make it fairly large, and position it towards the top.

CTRL+CLICK the text layer to load the selection, then go to SELECT->Feather, and enter 3. Now hide the text layer.

Set your foreground color to white and background to light grey. I used:#7E7E7E.
Now create a new layer, then go to Filter->Render->Cloud. Then go to Layer->Image->Flatten Image. (if prompt for "Discard Hidden Layers" Click ok.)

Now go to Image->Rotate Canvas->90CW. Then Filter->Stylize->Wind:
Method: Wind. Direction: From the Right. Press CTRL+F about 7 times to reapply the wind filter. Then Image->Rotate Canvas->90CCW to turn the image back to normal viewing.

Now Filter->Sharpen->Unsharp Mask. Amount: 500%. Radius: 2. Threshold: 0.
Then Filter->Sharpen->Sharpen. Reapply twice..

Now open the color balance box and play with the color sliders to get some nice colors.

3D Cliff Text