If you just want to use a gradient effect, break apart the letters and fill them with whichever effect you want. You will probably have to mess around with the effect for a while to get it right. Maybe use the radial gradient for the spotlight?
To do a spot light effect, I guess the best way to get it exactly right is to create it then use the letters as a mask to show through the spotlight effect a syou thought. If you have Freehand it is very easy to create this effect with a marquee, but thats no help if you haven't got it!