You can 3D > Extrude Text
But you often run into problem liek miter limit on the M which I could nto fix This is better done in Phothsop using inner bevel. You can also better achieve a chrome and brushed metal effect if needed in Photoshop. Alien Skion has a plug in for Photohsop which gets you even better options.
Also for Illustrator http://www.shinycore.com/products/pathstyler/
I tried the 3D effect but it either just gave me a lot of black boxes or the shapes got messed up. I also tried the emboss effect in photoshop but they didn't look very good i do have the alien plugin already installed so i will give it a go
You would do better to draw it by hand like Scott is showing you.
It’s a fairly símple job although it may take a minute or two.
No automatic extruding or embossing will give you a satisfactory result.
As Mike points out, Photoshop’s Inner Bevel is all right as far as it goes but a hand drawn job will give you even better results.
Pen tool (probably followed by Live Paint and gradients).
You will notice that Scott did his sketch in a hurry and that some lines are not parallel that should be.
Start off with the lettering straight, use ruler guides to ensure consistency between letters and use constrain (Shift) on the pen tool for vertical and horizontal lines.
Yup, just the pen tool. And yup I did it fast to demonstrate and merely manually traced the image posted above. But if I were really creating it for a project I'd ensure all paths are parallel where they should be as well as all character stroke widths were proportionatly correct.
Actually I'd probably create the character flat without any perspective, then distort once it was complete.