This tutorial was written by me on Dec 17th 2009.
I'm usign PSP X2 but any version will work and for those who have working knowledge of psp. Any similarity to any other tutorial is purely coincidental.

Supplies needed:
A tube of your choice, I'm using a Keith Garvey can be purchased HERE.
The kit is a FTU by Agnesingap Design called Happy Day, find HERE
Scallop Frame: HERE 
Mask # 11 from Designs by Vaybs HERE
Font: GrechenFuemen ROB
Plugin: Eye Candy 400/Gradient Glow (optional)

 Open a new canvas 500 x 500 and floodfill with white.
Add a new raster layer, select all.
Open and resize paper 5 copy and paste into selection to you canvas, deselect and apply mask 11.
Merge group.
Open Scallop Frame resize by 90% copy and paste to your canvas as a new layer.
Selecctions - Select all -
Open paper of your choice and colorize of red; copy and paste to your canvas.
Selections - Invert and hit delete in your keyboard. Delete now the scallop frame layer (black).
Paste below the frame the tube of your choice and a resized paper from the kit.
With Magic Wand tool select inside frame. Selections - Invert and hit delete to the tube layer and paper to get rid of the part of the tube and paper we dont need.
Add a Drop shadow of your choice to the tube and frame layers.
Now, let's decorate the tag, see my sample and use as a guide to decorate yours.
Here is how much I resize elements
Element Happyday #:  (paste the following elements to the right side of the frame)
1- resized by 35%
15 - Resized by 20% Flip.
14 - Resized by 30%
17 - Resized by 15% Rotate by 15 Right.

Paste the following elements to the left of the tag)
Element Happyday # :
9 - Resized by 15% Rotate 15 left. Duplicate this element and resize duplicate layer, rotate by 10 right and resize by 77%
13 - Resized by 8% Rotate 15 left. Place it on top of the tree.
27 - Resized by 8%
30 - Resized by 15%
35 - Resized by 35% Duplicate - Image - Mirror.
23 - Resized by 18% Image - Mirror.

You almost done. Add copyright and your name. I used Noise 66 uniform and gradient glow to the name.
X out the white backgound layer, Merge visible the layers left.
Save as a PNG.

Thank you for trying my tutorial. Please email me if you have any question.