Some users have recently had their accounts hijacked. It seems that the now defunct EVGA forums might have compromised your password there and seems many are using the same PW here. We would suggest you UPDATE YOUR PASSWORD and TURN ON 2FA for your account here to further secure it. None of the compromised accounts had 2FA turned on.
Once you have enabled 2FA, your account will be updated soon to show a badge, letting other members know that you use 2FA to protect your account. This should be beneficial for everyone that uses FSFT.
The poster you linked to is definitely made with Rasterbator, as posted above. The characteristic dots give it away. And definitely make use of all those university laser printers, I've found they work quite well for the task.
Looks like Samurize (http://www.samurize.com). It's a cool program that lets you display pretty much anything, however you'd like it. I highly recommend it.
I took Wally's suggestion and made a version with caps, which I do think looks better. You can pick which one you like better and let me know if you'd like anything changed.
I personally use Bitstream's Font Navigator, which came with Corel Draw 8 and is no longer available. Googling around, however, I found recommendations for The Font Thing at http://members.ozemail.com.au/~scef/tft.html
It's apparently a bit outdated (might not handle OpenType fonts correctly)...
Photoshop all the way. I used to use Corel PhotoPaint, then discovered PS and never went back. PSP doesn't impress me either. For one thing, it has horrible JPEG compression algorithms. Basically, only a brinza would try to use PSP for serious image manipulation.