You can use regular brushes to make the text, or any shape you'd like.
OR you can use a program called Wally.
Make a .bmp of what you want you texture to be. This .bmp must be 64x64, 128x128, or 256x256 pixels in size. Drag and drop into a New File in wally. (texture file type you are making should be .wad).
I assume you know how to load a .wad in Hammer. (ya?)
Everyone always says "Use the search!" "Already been asked!"...
Have you ever tried to search on the site? DOESN'T WORK! (Because people don't know what they're looking for. Did IIopn know he was looking for Wally?)
So either you answer shit, or go watch Havvok's cartoons!
Well searching for the important words from your search kinda helps. I thnk I've tried and and found some things before; besides begginer has a point in that these things have been asked recently, sometimes twice.