This is where nothing comes together for me:
Step 4
Create a new layer beneath SHINY, then select both SHINY and the new layer and go to Layer > Merge Layers. This will cause Photoshop to rasterize both the text and the Layer Styles so that we can build more Layer Styles on top. There’s possibly a better way to do this though simply rasterizing the text layer will not do this, not in CS2 anyway.
I work with CS5 and I rasterize the type layer then I add the gradient overlay,and then I merge the layers. The final result is only the gradient that I did last…in one word it is not merging the layers.
Can you please help me out with something more explanatory?
Thanks.