K well i don't know the proper name for this effect, and i have never seen a tutorial with an effect even close to this one. So i decided to make it incase any of you guys would like to use it. Well here goes nothing. :D
Step 1
Open up the background you wish to use (i made my own like usual).
And write the text you wish to make the effect on, (mine is nightmare of coarse)
Step 2
Now duplicate that layer 4 times so you have 5 layers that say the same thing
Step 3
now time to make them blurry
k now pick the first copy and go to filter>blur>motion blur
It will ask you to rasterize the layer click yes.
make sure the angel is at 90 degrees.
do this to the other 3 copies (but do not do it to the original text)
but each time pick a higher blurr level
should look like this by now

step 4
k now go to the original text and go to layer>layer style>blending options
and go to inner glow and add inner glow that you wish to give the text
Now repeat this step to all the copies except for the final one
you should have something that looks like this

Step 5
k now go to image ready
duplicate the first frame
and in the first frame make all visible but the last copy
tween it
now duplicate the last frame
and make all the layers visible but the last and second last
and tween it
and continue with so on and you will get a smooth effect like this