Start out by choosing your text, write it large and in white. I used a gradient of dark gray - black in my background as well.

Duplicate your text file by choosing Layer > Duplicate Layer. Then hide the layer you have duplicated, we will come back to that later. As for the text layer that's still there, we need to rasterize it so we can run some filters. Right click on the text with the text tool and choose "rasterize."

Now choose Filter > Stylize > Wind and click one.

We are going to repeat this filter on each side of the text, but to do so we need to rotate the text layer first. Choose Edit > Transform > Rotate 90 Degrees CW. Now run the filter 2 more times on this side by pressing Ctrl+F twice. Rotate your image again and repeat for each side.

Once you have winded each side of the text, choose Filter > Blur >Gaussian Blur. Depending on how intense you want your fire to be, choose an amount of blur that suits you. Mine looked like the image below.

Duplicate this layer, and change the mode to Overlay. While on your duplicated layer, choose Filter > Distort > Ripple.

You should have something like the image below. Merge these 2 layers back together by pressing Ctrl+E once.

Create a new layer, and change the mode to "color." Rune a Yellow-Red gradient across your screen to color your image.

Create a new layer below the two previously merged text layers. We are going to add a little smoke. Ctrl click your merged layers to get a selection of your rippled/blurred/winded text and fill the selecting with black. Move the selection upward on your palette so that the smoke is rising upwards. I have also used the smudge tools to make the smoke a but more erratic.

No go back to your original text layer, the one you have had hidden from the start. Make it visible again, and while on the layer, choose Layer > Layer Style > Bevel and Emboss. I used the following settings.

Change the color of your text to a deep red, or something else of your liking. Here is how mine turned out!