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.
Due to work flow optimization guys at Adobe decided to hide some of the filters in Photoshop CS6, if you are missing some of them, you can easily make the visible again.
In this interesting Photoshop tutorial I will show you how to move, rotate, resize and overlap individual letters, numbers and other characters in text.