It is exactly both those two things. Google it & I am sure you will find several trustworthy places to download it. (Bonus it is also not a large program, wont take up much space on your comp)
Here's the basic rundown on how I made this piece. I first designed and angled each letter in Xara. Then I went to the file menu and selected export bitmap, which then gives options to save the file. I saved them as transparent PNG's which I opened up individually in PS. Then I created a new PSD and placed the individual letters into it as a layer. (Each letter a separate layer of course.) After editing, arraigning, and adjusting as I liked the wallpaper was done.
Hope this helps. ~Lauren
Oh also, just a tip, Xara is like make-up to women, the trick to using it is to make it seem like you hadn't used it at all (i.e. it's all natural beauty). It is often easy to spot a Xara 3d text piece (for me at least) and not that it's a bad thing, but there's so much more of a wow factor in not knowing.
Cery welcome, I hope that Xara 3d works well for you. Feel free to contact me if you have any oher questions/would like more details on something I might be able to assist with. Have a super day, ~Lauren