Sounds like fun. But I can't do layers. I am Photoshop Challenged.
Photoshop is not the only program that gives you text. The new Picasa 3 does it also.For Photoshop:
All you need to do in Photoshop is use the text tool. Click on the T (for text) to activate the tool, then write whatever you want on your photo.
Text makes its own layer so that's where layers come in. So before you save your photo, you will have to flatten the image. (Go to the menu: layers>flatten layers. Then do "save as....")
Here is the fun part with text. Along the top you will see different options, font, size, color, there is even an A over a half moon type shape, and more. Experiment with those options. The half moon thing will shape the text to any configuration so you can make it wavy, slant up or down, etc. If you go back to the "move" tool, (the little cross), you can move the text around the photo.
After you get the text the way you want it, and before you flatten and save, you can also go to the menu for Layers> Layer Style > Drop Shadow
This will give the text a 3D effect.
Flatten the image and save only as the last thing you do and you are done.
Hope this helps!