I didn’t understand your question. I thought you wanted to know if it was possible with PSE 3.
Anyway this is how I did it, there may be other ways.
1. Create a new blank document with a white background.
Make a new layer above it, Command>J (Mac).
Fill the Background (bottom) with color using paint bucket tool. Type text on Layer One (top).
The layers Palette should look like image #1.
Activate the top layer then hit Merge Down, Command>E (Mac). The Layers Palette should look like image #2.
With the Magic Wand tool click the text image, Then Select>Inverse. With the text selected, hit Edit>Cut.
You then should see the yellow showing through.
Add a drop shadow from the Layer Styles palette to the text layer.
Last flatten image.
This is based on using solid backgrounds. And I have never seen PSE 1 so I can only describe PSE 3.
Here <
http://www.pixentral.com/show.php?pic=1dOAN491jzzz0YQtLJnkZk iGVShCW9> is the visual.