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If you’ve ever tried to create and format type in a channel, you know what a pain it can be. Especially because, when you’re working in a channel, it doesn’t create an editable Type layer, so you’re really limited to how you can format and, of course, edit your type. So instead of creating type in a channel (which many special channel-type effects call for), just create your type on a layer as usual. In fact, don’t go to the Channels palette at all—just pretend you’re not using channels. Once you’ve got your type formatted and adjusted just the way you want it on your regular Type layer, Command-click (PC: Control-click) on your Type layer’s thumbnail in the Layers palette. This puts a selection around your type. Now you can go under the Select menu and choose Save Selection. When the dialog appears, click OK, and it saves your perfectly formatted type as (you guessed it) a channel. Now you can delete your Type layer, and you’re left with an Alpha channel with perfectly formatted type.
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