Let's begin by creating a new PhotoShop document and name it 'blood'.  Just to be sure you end up with the same results, try to follow the steps as closely as possible.  This technique will require a little different tweaking depending on what font you use, what resolution your document is, whether the final output is for screen or print, etc..  You may have to experiment a bit.  I started with a 8x5 inch, 72dpi, RGB Color document on a white background.


Next, you'll need some type.  Use a bold font with thick letters. Make sure your type is large enough so that it doesn't get lost in the 'ooze' and become illegible.  Also, make sure to leave a good inch or so on each side of the letters as this effect will splatter a bit!

  

To give the type a bit of a liquid look, you will need the help of three filters, Wind, Spatter (of course) and Stamp.


First, for the Wind Filter to work properly, you need to flatten and invert your document.  From the PhotoShop menu, select Layer>Flatten Image, and then select Image>Adjust>Invert. 
Once you invert your image, rotate the document 90f clockwise by choosing Image>Rotate Canvas>90f CW from the PhotoShop menu.  
Now run the Wind Filter twice.  Choose Filter>Stylize>Wind (Method: Wind; Direction: From The Left) and click OK.  The Wind Filter Dialog and settings are shown at the top right.  Run Wind again by using the shortcut key (Ctrl/Command - F) or by choosing Filter>Wind from the PhotoShop menu.  Your image should look like the image shown bottom right.
Now rotate your document back upright by selecting Image>Rotate Canvas>90i CCW.
Step Three
Select Filter>Brush Strokes>Spatter (Spray Radius: 15; Smoothness: 10).  Your text should now look something like the one shown at the top right.
Before using the Stamp Filter, you need to make sure that black as the foreground color and white is the background color.  The Stamp Filter will apply these colors for it's effect. 
Now that the colors are set, you are ready to run the Stamp filter.  Choose Filter>Sketch>Stamp (Light/Dark Balance: 25; Smoothness: 15).  You should now have an image that looks like the one shown bottom right.
Step Five
Now comes the fun part.  This is where you actually get to have some creative input into your final artwork rather than relying on filters to do it for you.  First, invert your image again by choosing Image>Adjust>Invert or use the shortcut key Ctrl/Command - I.  Next, slop up the letters a bit by adding some drips and drops here and there.  You don't have to be too neat with this, just use the Paint Brush Tool with a hard, round brush and have some fun.  Mine is shown at right.


Now you need to create the channel mask that will be used in many of the steps throughout the rest of this process.  Click on the Channels tab on the Layers/Channels/Paths Palette (shown at the top right) and drag the blue channel into the new channel icon.  This will create a new channel called blue copy

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Now go back to the Layers tab and select the background layer.  Fill the background with white for now.  You can do this a couple of different ways.  The first way is to make the foreground color white and use the shortcut key (Alt/Option - Delete).  The other is to choose Edit>Fill (Use: White; Opacity: 100%; Mode: Normal).

 

 

After filling the background with white, you need to create a new layer. Do this by clicking on the new layer icon at the bottom of the layers palette. Name it "blood"


Next, select the foreground color to activate the Color Picker Dialog box (right).  Make the foreground color red by using the RGB values 128,0,0 and click OK.  Fill the 'blood' layer with red by using the paint bucket.


Now load channel 'blue copy' as a selection by choosing Select>Load Selection (Document: blood; Channel: blue copy; New Selection). 


Next, open the Color Picker Dialog again and change the RGB values to 192,0,0 and click OK.  With the 'blood' layer still the active layer, fill the selection by going to Edit > fill and choose the foreground color. Now invert the selection Select > inverse.

Choose a darker red color in the picker and then fill using the same method as above.

Remove the selection with the shortcut key (Ctrl/Command - D) or by choosing Select>Deselect from the select menu

 
For the last part of this step you will need to blur the image a little using Filter>Blur>Guassian Blur (Radius: 4.0).  You are going to be using the Plastic Wrap Filter next to create the specular highlights.  Blurring the image will create an expanded color range for the filter to wrap itself to.  Your image should now look like the one shown bottom right.
Step Eight
Now for some real magic.  Choose Filter>Artistic>Plastic Wrap (Highlight Strength: 15; Detail: 8; Smoothness: 8) and click OK to create some very cool specular highlights.  The Plastic Wrap Filter is great for creating all sorts of irregular highlights like those found in liquids, gels, plastic, slimy substances, etc..  Your image should look like the one shown at right.
Now we need to remove the background from the 'blood' layer. Load the blue copy selection again and hit "delete"

The blood letters look best on a dark background.  I created mine by filling the background layer with gray (RGB values 128,128,128).  I then added Noise, Filter>Noise>Add Noise (Amount:15; Distribution: Guassian; Monochromatic) and finished it off with some Lighting Effects, Filter>Render>Lighting Effects (Light Type: Omni; Gloss: -100/Matte; Material: -100/Plastic; Exposure: 0; Ambience: 8; Texture Channel: None).  The Lighting Effects Dialog settings are shown top right.