Melanie asked me the same question just the other day LOL
Here was my reply to her:
(Hope it helps you too)
You asked about how I do some of my lettering.
Most of the time, unless I am using a pre-made alphabet; I use a program called Print Master Platinum 2011.
I think I got it at either Target or Walmart for about $40.
I really like it because not only does it have lots of clip art, the program allows you to import your own graphics also.
But the best thing is the lettering. The program allows you to put "fills" inside the font that you are using. You just upload a texture, background or any kind of graphic and the program places the picture inside the text. From there you can enlarge, shrink or position the fill any way you like.
You can also bevel the text which makes it look raised.
(That's how I do the lettering on my fruit tags).
You can also add drop shadows or different types of outlines to the text.
I didn't know that the program had all the lettering options when I bought the program, so it was a nice surprise :) I had fun playing with it and learning the various options. It also helped that it is fairly user friendly.