Photoshop 5 LE question

I have Photoshop 5 LE and haven’t had the chance to really get into it. I would like to do a trick and wondering if it was possible:

Let’s say I were to take the Straight Dope banner that appears at the top of the page and hollow out the letters so that you could see an image behind it. Can I do this with Photoshop?

Yes. It’s easy enough, involving erasing the letters and layering the banner image over the one you want to show through and then merging the layers.

Ditto Arden.

This is done by using the magic want to select the letters, then you hit delete. When I do this, I usually “feather” the selection (1 pixel) before deleting just so the image looks smoother. Feathering can be found under the “Select/Selection” menu.