Handmade uses the Pacifico font, which you can dowload free from Fontsquirrel

Handmade Two uses Calgary Script for the demo only, which is a premium display font, therefore is not distributed in the dev PSDs.

You can use any image editing software to create a wordtype or word-based logo using this font in any color you wish. To get the transparent background, your software must be able to save the file as a GIF, or 24-bit PNG. For higher quaity, use the PNG filetype.

The below link has some great tutorials for creating the impressed effect using Photoshop. This tutorial could also be applied to GIMP or Paint Shop Pro using similar tools and techniques.

View Tutorial