You just pick the wooden letters you need (make sure you spell it right-I forgot my R and had to go back:)). Paint the front and side of the letters brown and let dry.
Use the letters as stencils on scrapbook paper, rotating paper so that you use at least three different patterns, and cut each one out slightly smaller than the wooden letters so there is a space when they are glued on the wood.
Using Modge Podge, glue the paper letters onto the wooden ones, leaving the space on the outside edge so the brown paint shows.
Once the glue is dry, use a sponge to paint more brown along the outside of the paper letters, blending it with the dry paint on the wood. I did a slightly messy look so that you couldn't tell where the paper ended and where the wood started. 
Once the paint is dry, sponge more Modge Podge on thickly, so it will have some texture when it dries.
There are a lot of options for the letters. You could mount them on the wall, use them as towel or picture hangers by adding hooks, or mount them to a board, like I did, so they stand on their own.
To make the board, I just did a collage of the papers I used on the letters. Once the papers were ripped and arranged just how I liked, I glued them on with the Modge Podge and then did the texturing over the top just like I did on the letters.
Once all this is dry, I added ribbons and glued (again, with Modge Podge) to the board.
Have Fun!
My dad took this picture in the Philippines. 
