photoshop image query

When I bring a text logo image over from photoshop, I'm restricted by a box that touches the edge of the letters, which seems to restrict me when adding certain filters and effects by clipping said filters and effects.

Is there a way of having the letters not touching the edge of the box?

I'm working in HD and I'm saving the psd at 1280x720x72.

aka Newbie Wan Kenewbie. "The young Newbie, is now a Padawon."

System
Mac Pro 2.8Gb quad core
8Gb RAM
1x 320Gb 7200 hardrive
1x 1Tb 7200 hardrive
Nvidia Geforce 8800 512mb Graphics card
1x 1Tb external WD 'My Book' eSata

Equipment
Panasonic AG-HVX 200
Firestore FS-100