First in line is the Drop Shadow effect, probably the most used one out of all.
I use it quite a bit my self. The Shadow effect along with the Glow effect contain
most of the same general options.
Blend Mode: Is where you set how you want your shadow/effect to overlay
on to the background or layer below it. In most cases, the default mode
for each effect produces the best results.
Color: Next to the Mode setting you will see a box, click on this
and choose the color of the effect.
Opacity: How visible you want the effect.
Angle: Determines the lighting angle at witch the effect is applied to the layer.
Distance: How far the effect is from the Type or original graphic.
Spread: Full control of our effects blur. Creates a softened effect. A higher value
increases the spread of the diffuse.
Global Angle Check Box: Your angle setting of this layer will change
all the layers containing Effects. Uncheck this if you want that angle to
be dependent on this layer only.
Preview Check Box:This allows you to see a preview of the effect before you click the OK button.
Noise: Here you can adjust the strength of the effect that is applied to the layer.
A higher value increases the strength of the effect.
Drop Shadows & Glows Samples
Now I'll show some variations for each of the effects. I put a description next to each one.
Drop Shadow 1
Drop Shadow at default setting
Drop Shadow 2
Drop Shadow at default setting with 15 for distance.
Drop Shadow 3
Change text to blue.Default setting.
Opacity: 100 Distance: 4 Spread: 4
Inner Shadow
Start with the inner shadow at default setting.
Opacity: 90 Distance: 3 Spread: 3
Inner Glow
Text Color: Pastel Blue Glow Color: Light Blue
Mode: Screen Opacity: 100 Spread: 14 Edge