A great and simple way to create the letterpress like effect using Photoshop. Basically all you need to do is to apply different layer styles to text or object, let me show you how.
In Photoshop CS6, the new version of Photoshop, you can use special cropping tool and you are done, but that doesn't mean you cannot achieve the same result with older versions.
A bit longer Photoshop tutorial, but still very suitable for beginners, where you will learn how to carve a random text into human skin from scratch and make it look realistic.