Blood effect on a text

I don't know what u mean... not from a cut, defenetly not! I think from the bottom of the text... yeah, the bottom :)

If you want a "quick and nasty" way to do it, simply use the "Wet Paint" distortion.

But this has lots of 'run' lines and simply smears the pixels downwards; you don't get the drops at the end. You can manually add them with a paint-brush if you're careful.
It is also quite 'sharp', but you can blur it and use the tone-curve to get smoother corners.
Then you would have to add a double highlight, fade the colour a bit and put down a subtle drop-shadow... and with really small streaks, that;s going to be difficult.

Another way from within PPaint is to simply use the image of blood you have, cut the droplets out and re-position them/copy them and join it all up.
This would give a much better end result, but you need to learn now to work with objects and layers quite well.

If you were to generate it from scratch, I would probably use Draw, even if it meant exporting for the final image.
It would probably take slightly longer than the copying technique above, but you could change it and scale it with ease.

Use the pen tool to draw lines for the "streaks" to follow, change to a suitable pen thickness, convert the outline to an object. Add a circle at the end that's about 10% bigger than the pen thickness, combine it with the streaks. Add nodes about the same distance up the streaks as it is to the bottom of the circle and then delete the attaching nodes to create a nice "droplet" shape. Then it's just putting a wiggly shape to join them and you have the 'outline' of your blood.
Now you've got a couple of choices to fill it - mesh fill will produce very impressive results if you spend the time on it. Fills and highlight objects with blends and transparencies will be quicker and 'easier'; just use the tutorials on glass/gloss finishes to get an idea of what you're doing.
(you can use the pipette tool to pick the main body, highlight and shadow colours from the bitmap.)

Thanks dude... i will try all of them and see which one of 'em is the best :)

 Here's another one for you, entirely done with vectors:

1. Convert your Text to curves.

2. Make use from the smudge tool from the curve editing tool palette(second icon on the very left toolbar) with settings: "dry effect"= -1.

3. Add some elipse shapes around the text as drops and distort their form.

4. Apply a fountain fill to every shape and text from red(top) to darkred(bottom).

5. Select every shape including text, group it. Copy and paste to the same position(on another layer, thats better), ungroup the copy and melt only the copy. Delete the copy's fill, select a thin outline. Then copy again this unfilled copy or dublicate it, fill the second copy with a radial fountain from white(center) to lightred.

6. Apply a feather shadow to the 1st unfilled copy: Select small Glow, color black, merge mode normal, direction outer, transparency 80 and feather 3-5.

7. Break the feather shadow apart, powerclip it with the 1st outlined copy. Delete the outline too.

8. Select the 2nd copy, apply a perspective effect to it with the direction to right up. It only have to be a small perspective, so adjust the controlling bar on the direction line to the smallest possible.

9. Break the perspective effect apart, delete the orininal, move the group to match overlaping the red shape. This should be your highlight.

10.Thats it. A very simple blood effect.

Yea, the "smudge" pen works really well - I used a 45º angle to the pen and just dragged some lines down the way. You still need to add the thicker "drops" at the end of the runs (circle, converted to curves, top node nudged up a few times) - that involves welding the drops onto the text {Word of warning: break the text first so that the inner "holes" become seperate objects, then weld to the outer object and combine the hole and outer shape again, otherwise you loose the 'hole'}

For the highlight, I would create an internal contour, break it, duplicate the contour shape, move it left a couple of nudges from the origional and then (with it still selected) select the origional and "trim". Now get rid of the duplicate and fill the left-over shape with the highlight colour.Simple circle does for the secondary highlight on the droplets.

(Btw, r-drag an object over another and you can choose to "copy fill here" - better than repeating the same linear fills again and again.)