This main tutorial is written for beginners, so every step is explained in detail. If you are a more experienced user, you may want to read the summary at the bottom of the page.

1.Firstly, for pixel text, it is a good idea to use a pixel font. Some good ones to use would be 04b03, M47 FireWire, Goldy Round or Redenesek, which you can get from our fonts page. You can use any font for outlining.

2.You also need Paint Shop Pro (PSP) for this tutorial. I will be using Jasc PSP 9 for this tutorial, however it should work the same in Corel PSP X (and newer) and older versions of Jasc PSP. You can download a free trial of it from the Corel website.

3.Open up PSP and click new in the top left.

It does not matter what the size is, as long as it is big enough to fit all of the text. Then select the Flood Fill Tool and fill the canvas with the colour you want the border to be.

My border is going to be black.

4.Select the text tool , click anywhere in the colour-filled square and type whatever text you want.

Mine is going to say RainbowBliss. Highlight the text and on the top or in the pop-up window select "floating" and for pixel text turn anti-alias off. Select the font and size you want and the colour you want it to be. To get size 6 just type it in the size field and hit enter.
Click here for a Picture.
After that click apply.

5.On the top go to Selections > Modify > Expand. If a pop-up comes up saying "the selection must be defloated" click OK. Then set the number of pixels to 1 for pixel text or however thick you want it to be for outlining.

Click OK after that.

6.To save it as an image with a tranparent background, copy the image (CTRL+C) and then paste it as a new image (CTRL+V). Go to File > Save As... In the Save As window, select "CompuServe Graphics Interchange (GIF)" as the file type ("Save as type"). Click on "Options" in the bottom right corner, then click "Run Optimizer..." in the bottom right corner of the new window. In the trancperancy tab, select "Keep image or layer transparency" and click OK. Type a file name and select where you want to save it, and then save it.

End Result:

A summary:
You need to flood fill a canvas with the border colour. Then select the text tool and type the text and choose your colour. Make sure you also select "floating". Go to selections > Modify > Expand then expand it by 1px. Copy and paste it as a new image and then save it, see step 6 for instructions on saving it with a transparent background.