Czarmae

http://i49.tinypic.com/rtib87.png

It took me 1hour for the smudge. It's hard! lol

CnC mates (: Rate or Hate.

You ruined the lovely smudge with those lighting effects. Remove them and create lighting by brushing colors and set the blend mode to color/color dodge or something similar. Always works better than effects on smudge, since effects makes the smudge look flat.
Remove the outer glow on the text, only looks cheesy :)
And finally smudge the render a tad the same way as the background to blend it in.