Create 3d text in max like this
Now make Particle Cloud and pick 3d text that you made
Load cloud / smoke
Set use rate to 500
Set speed to 0.2 and variation to 100%
Set life to 10 and variation to 25
In frame 0, set size to 8 and in frame 25, set size to 85
Set variation to 50% and fade for to 15
 
In particle type, choose facing
Create 2 wind force as you see in picture below.
Set strength of wind 1 to 0.2
and turbulence to 0.2
and frequency to 2.0
Set strength of wind 2 to 0.2
Now make a gravity force as you see in picture
Set strength to -0.3 and select spherical
Bind this 3 force to your Particle Cloud
You'll need to create a material. Go to material editor and set the options below for your material
click on face map
in opacity choose gradient
and in Gradient parameters in color #2 choose noise and Radial for Gradient Type
and in noise parameters
set size to 20
in frame 0 set color #2 to white and in frame 35 to black
in frame 0 set phase to 0 and in frame 35 set to 10
now copy this noise to color #3
and assign this material to your Particle Cloud
Make an omni light and if you want a puffy cloud you can use ray-trace shadow
Hide your text
You should see something like this in frame 0:
You should see something like this in frame 15:
and in frame 25:
Download the max file here if you haven't already.
Discuss this technique in the Discreet 3DS Max* forum at Creativecow.net.
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