While the post is a bit older, that doesn't make the end result any less cool. In this post from 53x11.com, he shows you how to use GD and TrueType fonts to create "dynamically generated text images".

Nevermore be shackled by the appearance of jagged fonts. Release the bonds of using the same tired web typefaces over and over again. Save yourself immeasurable hours of creating individual text images for titles. The time has come to bathe in the omnipotence of dynamically generated text images. By harnessing the power of PHP and the commonly built-in GD library, you too can become a god among men.

He offers the script for download and walks you through the entire process of getting it all set up. The only downside to this method is that the text can't be selected, but with the help of alt tags, browsers with images off or search engine spiders can still get the information...