This is probably the most popular effect in Hollywood movie titles, and it's used in a dozen other places as well (I saw it in a Levi's print ad just this evening). It uses the technique of grunging a photo (which is used in another tutorial here in the book), but it uses it in a different way. Also, after you've created the effect, you'll drop it into a movie poster layout (you'll have to do a little work there, mostly formatting type, but it's easy).
Quick Tip: Creating type on a path
The secret to creating type on a path is (are you ready for this) there is no Type on a Path tool. That's right, there's no special Type tool—it uses the standard Type tool. Just draw your Path (using a custom shape or the Pen tool), then get ...