let's say I draw a heart and some text. how can i make it look like pencil on real paper?
i'm using photoshop cs3. :]

you can use the brush tools provided by photoshop. I'm using photoshop cs so i'm pretty sure Photoshop cs3 has better ones.
You can find them here

If you're printing it out, make sure the resolution is big.. like 200-300? Because that way, it'll look better when you print it out.
And um, not sure what could make it exactly like pencil,
but you could, like blaqheartedstar said, use brushes.
Personally, I think chalk23px could possibly look like it. You could totally edit the brushes settings [scattering, angle gitter, and stuff) to make it look like pencil.
Or you can try googling it, mebbe?
I thought this looked pretty nice and realistic:
http://www.graphic-design.com/Photoshop/pe...etch/index.html
but not sure if it works for text and stuff.

Use an appropriate brush (I'm totally not one to ask about brushes, I suck with them), and use a tablet if you can. Make sure you don't use black for the brush colour, use a dark grey. It'll look more realistic.

Oh, and like Toby said, make sure it's a high dpi if you're printing it out or else you'll get fugly pixels. At least 266, if not more.

Why not just draw on blank paper and scan it in.

not all scanners can produce crisp scans,... mines for one can't. I tired it out for the signature portion of my blog... didn't work out.