I think if you took off those diamond shapes it'd look a little better.I see you're trying to be creative which is def a good sign.Your text isn't too good here - is your Anti-Aliasing on? It looks jagged for some reason.Also - lower the opacity on those circles.
The text is choppy because when he 'Free Transformed" it, he didn't hold down shift. Happens to me all the time. Or his anti-aliasing is off.