1. Create a New image with a White Background. Put down a Vector shape or Vector text with a Background color of your choice. I chose red. Make sure your Foreground color is set to Transparent (Null).

2. Press Ctrl+Shift+B to create a selection From Vector Object. Go to Layers | New Mask Layer | Show Selection. Next, go to Effects | Art Media Effects | Brush Strokes... use the Large drybrush preset. If you do not have the Large drybrush preset, use these settings.

Settings used:

• Softness = 1
• Bristles = 175
• Width = 15
• Opacity = 100
• Length = 15
• Density = 100
• Angle = 309
• Color = Black

3. Make the Background layer active, then create a New layer. Press F to activate the Flood Fill Tool, then fill the selection with White. Make the Background layer active again, then create a New layer. Go to Selections | Modify | Expand... expand by 1. Flood Fill the selection with Black.

4. Press Ctrl+D to Select None. Hide the Background layer, then merge the visible layers. Add a drop shadow, if you wish.

That's it! Now you can do a Grunge Effect.