Saw this on a video the other day and been meaning to create a version in gimp.

I think its pretty self explantory, but create a text layer and position, then autocrop text, duplicate text layer and fill with desired colour, scale new layer to image width and position without moving the height postion. Select text layer and do an alpha select, turn off text, select colour bar layer and grow selection by 1px then delete. Add a drop shadow if required.

I like it, looks good. The font choice is the key.

Maybe some silk ribbon effect on the band before you cut the text from it, for a christmassy presenty effect?

Neat effect, he4rty.

im somewhat of a newbie and REALLY like this effect but im not 100% successful at it. would you mind explaining it for a beginner? I was able to do almost something similar...almost there, but something still wrong

01. you start with a background layer, like the wood he4rty used
you can use a pattern or a texture from the internet for it ('texturemate.com' is one example)
of course just a plain colours works too

02. create a new transparent layer on top of you background

03. make a rectangular selection, like the band you see in he4rty´s original and fill it with the colour you want

04. type your text with the text tool - make it so big that it fits in the band

05. alpha select your text and then on the layer with the band, press delete

GOT it!!!! thanks sooooo much....great heavens i love the internet!!!!! especially when nice people share information. PRICELESS!!!