Hi guys! This is the first time I've had to post as I cannot seem to find information on doing this technique anywhere online. Any advice is much appreciated.

I'm trying take an object and cut a letter out as in the example above. Now I have no problem with this in Flash using vectors but I'm fairly new to photoshop and having played around with layer masking etc. I cannot get this to work.
Can anyone please advise on how I should go about cutting a letter out so the background becomes visible? I would also like to have an inner shadow or whatever is seen in the above image.
All advice is very much appreciated , thank you.
I'm trying take an object and cut a letter out as in the example above. Now I have no problem with this in Flash using vectors but I'm fairly new to photoshop and having played around with layer masking etc. I cannot get this to work.
Can anyone please advise on how I should go about cutting a letter out so the background becomes visible? I would also like to have an inner shadow or whatever is seen in the above image.
All advice is very much appreciated , thank you.



