Here is my not so good looking tutorial. I had to do it this way because i have No web space to save all the images to. Open the jpg at the bottom of this tutorial. Tell me if you have ANY probs. The rest is in the next few post.
1. First make a plain text (black). It would be best if this text is large. [fig 1]
2. Rasterize this layer (right click on the layer then click rasterize). [fig 2]
3. Select each letter with the magic wand while holding the shift key.
4. Click on filter>render>clouds. [Fig 3]
5. Click filter>distort>glass. [fig 4]
6. Make distortion 20, make smoothness around 3 or less (depending on your choosing, make the texture tiny lens (also works with frost) , and make the scaling watever you like the bigger the scale the bigger your diamonds look (i keep mine around 80%). [fig 5]