How do i format the heading of the section such that first letter is bigger size capital letter and following letters as smaller sized capital letters in the same word ?
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You can use titlesec for this, but need a helper command for the sizing, and need to place this command at the end of the "before code" section of \titleformat.

\RequirePackage{fix-cm}
\documentclass{article}
\usepackage{titlesec}
\usepackage{textcase,relsize}
\def\myFBRSC#1{{\larger[3]{\MakeTextUppercase{#1}}}\scshape }
\DeclareRobustCommand{\FirstBigRestSmallCaps}[1]{\myFBRSC #1}
\titleformat{\section}%
{\normalfont\Large}{\thesection}{1em}{\FirstBigRestSmallCaps}
\begin{document}
\section{Test Section}
Some text.
\section{lower case section}
\end{document}
I have used relsize to do the size changing, with the addition of fix-cm to make larger fonts available. The command \MakeTextUppercase is from textcase, but LaTeX's ordinary \MakeUppercase may be good enough for your purposes. For the above code to work, the section heading should not start with a non-text token, such as a math character.
Andrew Swann
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\section{\textsc{Section Title}}– Sean Allred Apr 10 '13 at 08:40titlesecetc.) It's not a personal help forum ("how can I make the third letter in a word yellow in subsections in mythesis.cls") but a know-how site ("how can I change colors in headings"). Please follow the links in the answer of the other question, read the package manual there, which has the solution. Note,\textscor\scshapeis the font shape you need. You may look at the [tag:small-caps] tag. – Stefan Kottwitz Apr 10 '13 at 11:07