Taking a screenshot of your post I added a couple of red rectangle shapes set to overlay (which turned the text red the same as the shape). Then I added, with layer styles, a green and red inner and outer glow which gave the blur.
You can play around with the layer styles to get the effect you want and go for gradients rather than plain colours etc
Thanks Dave. I am still a little confused but getting the hang of it. I didn't realize everything could be done within the layers area.
Far more sophisticated than what Captivate offers.