Have you tried the "Drop Shadow Text" tutorial. It's a good starting point. - Guido
Thanks Guido, will have a look but can't find on Adobe TV Photoshop Touch tutorials - am I looking in the wrong place?
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Sorry. My mistake. I thought you're on the tablet version of PS Touch
Here are some short steps to illustrate.
create a e.g rectangle selection on an image
create a new layer from this selection
choose deselect at the new created layer and apply the drop shadow. The drop shadow needs transparent pixels for drawing
Hope that helps. -Guido