Using text in Photoshop

I'm trying to create that text effect you see during the beginning of those Star Wars movies whereby the text scrolls up the screen and it has that perspective effect that makes it look like its going away from you at the same time.
     Anyhow, I've typed my text and I've read that I then need to convert it to a shape. But when I do that the text changes dramatically and is no longer that legible (frankly, I think it looks like crap). I guess that's normal because by converting it I'm now rasterizing it (or am I un-rasterizing it? I dunno). Is there any way I can minimize that ugly change (maybe by using a font type that's better suited for that)?
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EirmanChief Operations ManagerCommented:
Photoshop us useless if the font size is small. (It's probably okay for banner size text).
Photoshop fonts are bitmaps (pixels) which is why you see jagged edges.
You probably need to use a program that uses vectors for fonts.
No matter large/small you make a vector shape/font it still retains the smooth edges.
Vector vs Pixel/Raster

Do you have Adobe Illustrator?
Leslie BloomCorporate & Product Marketing ManagerCommented:
Rather than converting it into a shape, you can rasterize it. This allows it to maintain more of it's quality, while also allowing you to then use the Transform > Perspective tool that you would need to recreate the Star Wars effect you desire.

Note: Once you rasterize text, you can no longer edit it.

Rasterize your text layer. Type > Rasterize Text Layer (make sure the layer you want it selected in the Layer panel)
Select the rasterized text layer and apply your Star Wars effect. Edit > Transform > Perspective
David BruggeCommented:
@ Eirman,
I need to correct you. The type in Photoshop is vector, not bitmapped. That is why you can transform type from small to large without any depreciation in quality. If you rasterize the type and convert it into pixels, then you will see the effects that you describe.

@ John
Theoretically, there is no difference in the outlines of fonts in letter form and their outlines when converted to shapes, however I know this is not often the case in practice. There is a lot of information about shaping and interaction of letters that is discarded when converting to shapes that can sometimes have a big effect. Can you give us an example of what you are seeing with your type?

@ Leslie,
I think your approach has the fewest headaches, however anytime John wants to enlarge the type he will loose quality. I suggest that after rasterizing the type at the largest size desired, that he then convert the type to a smart object. This will lock in the resolution and he can still manipulate it.

He can proceed with the examples that you gave, but without fear of losing quality when he upsamples and downsamples the type as he manipulates it.

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EirmanChief Operations ManagerCommented:
Thanks for correcting me David Brugge.
I normally work with JPGs in Photoshop and rasterize as I go along.

I usually use CorelDraw for text with graphics.
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