Whoa. o.o
Serious?
Basically what I did was I made the background of the gun transparent, and just made about 7 layers in total on the main image, piling on the red and black with different types of brushes. I used more spongey, textured brushes for the bottom few layers, then used the dripping/liquid brushes in red for what hopefully look like blood splotches on the top layers. I sandwiched the gun between a couple of those black/red layers (although according to Flash I should have had them a bit higher) and then used the blur tool with the setting on 'darken' on the the handle thingy of the gun and a bit around the left edge.
For the text, I used "Nightmare" as a font, which can be downloaded at dafonts.com or something...
I then rasterized the text and added an outer glow to it in red. Finally, I did a border of about 7 around the whole image and feathered it to 4 pixels, tracing around the border twice in white.