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Hi,

Here's what you need to do.

1. Select the eliptical marquee tool and make a circular selection - fill this with the desired color. (Base layer).

2. Add a drop shadow to your requirements.

3. Duplicate this layer (this is your highlight layer).

4. Turn-off the drop shadow and add a 'inner glow' to this layer. Set opacity/spread to your desire.

5. Transform this layer and make it slightly smaller than the base layer.

6. Add the text layer with desired text. Add a slight drop shadow to the this layer.

DONE..

Here's how it should look [ATTACH]43473[/ATTACH]

PSD attached for your reference. Enjoy ...

Happy Photo-Shopping....

Cheers !!!