the best way to "fill" a word/image

[sj11]

Hi all, I'm a bit of a newbie to forums and to graphic design so please forgive me if I use the wrong terms...

I've recently started creating artwork in hard copy form and I'm trying to transfer it to a digital medium to reduce labour and broaden my range of products. I'm not in a position to buy Photoshop/Illustrator at the moment and have found that Paint.net has met most of my needs so far but I'm open to suggestions if a different freeware would be more suitable for what I'm trying to do. What I want to do next seems to be a bit beyond me and that's where I'd love some help

I am trying to create text that is transparent so I can "fill" it with some of the artwork/patterns which I have scanned. What would be the best way to do this so the outline of the text is very sharp? Also would it be possible to "fill" each letter with a different scanned image or would I need to fill all the letters with the same pattern? Any advice would be greatly appreciated

I've attached a VERY clunckily made version of what I'm trying to do using Powerpoint so you can get an idea of what I'm talking about.

[sj11]

Thanks, your tute was great, I knew there had to be a way to do it!

Is there any way to reduce the pixelation around the edges of the letters to make them smooth and seamless?

Edited June 12, 2012 by sj11

[Ego Eram Reputo]

You have two main options:

1. Create your text twice as large as you need and resize it when you're finished. This reduces a lot of these sorts of problems.

2. AA's Assistant (plugin) is great for smoothing edges (there are many more plugins just as effective). Find it here: Dpy's Plugin Pack.

I'm assuming you're using the Text tool with the antialiasing turned on?

[Ego Eram Reputo]

Sorry Welshy. I was answering the follow-up question...

Is there any way to reduce the pixelation around the edges of the letters to make them smooth and seamless?