Someone posted this in the Silhouette users group and I tried to play around with it in both the Studio and MTC. The only way it can be done in Studio is by editing the nodes on the bottom of each letters to separate the segment to leave this area uncut so as to adhere the bottom of the letter to the strip to be able to pop it up. This is very tedious! I just started learning the MTC a few days ago and I downloaded the Beta v. 4.0. which has the knife tool. So for those who are interested in creating this cute gift topper, all you need to do is slice the bottom of your text with the knife tool and you're set, as simple as that! The knife tool leaves the sliced area of the image open, thus, leaving it uncut, unlike the eraser tool which closes the image.
For pictures and instructions on the gift topper (the letters were cut manually using an X-Acto knife):
http://thecraftsdept.marthastewart.com/2010/07/paper-birthday-gift-topper.htmlBTW, somebody posted that this is doable with the eraser tool of the Designer version of Studio which I don't have.
This is my very first post to the MTC forum

.
Cheers,
Gayle
http://ligayatg.blogspot.com/
Comments
Welcome to the forum. I took a quick stop at your blog and you create beautiful projects.
Thanks for the reminder Gayle
The file is called II.11_R_PaperRibbonWith3DText.pdf , and is posted here:
http://groups.yahoo.com/group/MTC_Tuts/files/02_Basic Lessons/
If you are using MTC 3.3 or lower, use Lesson II.II_PaperRibbonWith3DText.pdf instead.
Note: You will need to be a member of the free MTC_Tuts yahoo group in order to access this file.
Both Bryan and Andy covered the use of the knife tool in the introductory Webinars covering new features of MTC 4.
See the information posted here:
http://forum.make-the-cut.com/discussion/18845/make-the-cut-version-4.0.0-beta-video-now-posted-updated-to-4.0.4#Item_5
and the Sept 13 Vimeo recording