What software do I need to create the letters on photo similar to this Town of Arlington website?

http://www.townofarlington.org

I have Fireworks 8, will this allow me to create a transparent font on a photograph?

Any graphics program that will allow you to place a layer of text onto a transparent background will do what you want. Photoshop does it for sure as I imagine many other do.

Yes it's easy to do that in FW. Just import the photo into a new document, activate the text tool and start typing. To make the letters transparent, reduce the opacity in the property inspector. In the example you gave though, the text seems to have a gradient on it - to do that, select the text and click the colour swatch > Fill Options, and change the fill category to gradient.

IT WORKED!!!!!! I can't believe it was that easy!!! You ROCK!!!

I use PhotoShop PaintShop & Flash!

I use photoshop only, and I was able to do it too. =D

I think all you need is adobe photoshp.... and here is the link to download.....
www.adobe.com

You do realise that the original poster has already solved the problem...? Post #4? Specifically the bit that said "IT WORKED".