When combining text and images together, it's best to be simple yet clever. Knowing how place text behind an image will make your designs look a lot more impressive. This tutorial looks a typical beermat or pub sign design...
First, you need to type and format the text which will later be manipulated, using the "type tool" and the "character" settings.
Open your image, adjust it into the desired position and arrange it lower than the text layer - to see what text it may cover.
Copy the image layer and turn off the "indicates visibility" tab of the original. You will need this later but not right now.
Using anchor points & the pen tools to draw around the whole of your figure. Use the "convert point tool" to follow around the corners.
With the anchor points joined up and the "pen tool" still selected, right click on the image and find the "new selection" option. Hit OK with the Feather Radius set to zero.
Click the "inverse" option on the "select" panel, followed by "refine edge". You can adjust the feather & edges of the image.
Turn on the hidden image layer and the text layers. Sandwich the text layers between the image layers. The copy layer goes on top.
The next part is up to you. Using the "layer style" options - by double clicking on the text layers - you can add glow, texture etc. to radiate the text.