What is the source for this and how did you select? When I need to knock type out, I use the Magic Wand and the Select>Similar to get the inside of the letters. If it's only a few letters, I'll just Shift-click.
if it's plain b/w with no gradients just bump up the brightness and contrast until it's clear. it looks like you tried to just use the paint bucket to drop white on the background
Use the magic wand (may have to play around with tolerance to get the edge right) to select the grey then fill with white. Sometimes it doesn't find the edges correctly, but if the tolerance is set it usually works well.
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