Cloverfield text effect photoshop tutorial

Hey guys, I just watched Cloverfield and thought it was a great, action-packed movie. I also noticed the cool text effect that the creators decided to go with to represent the movie. So obviously I decided to play around in Photoshop and see if I can come up with something close to it, and figured I might as well share it with you guys.

For those of you that aren’t sure what I am talking about, to the left is an example of what we are going to be creating (just the text effect, obviously) [click to expand].

Not bad ayh? Okay, let’s get going. For your convenience, this is a video tutorial, which will hopefully make it easier for you guys to follow along, as well as rewind/fast-forward if you need to.
PS: My Photoshop decided to play up on me during the taping of the tutorial, so expect a little stuff-ups. It might have had something to do with the fact that I had my desktop and Photoshop open for over a week without a reset!
Okay, let’s do this. Please keep in mind that this is just a basic introduction to how to make the effect, and there are other ways it can be done. More importantly, the bigger the canvas, the more tracking you can set on the font, the better the effect will be!