carved or cut text

What I want to do is take a plane or a plane extruded form a piece of steel and have text cutout of that mesh so the text is transperant or not even in the mesh anymore.So I want it to be like this example but I want to do the same thing in blender. Im using 2.5 beta
The red plane would be the mesh I want to cut the text out of and be able to have the bacground visible through the text.

Add a font object and type your text.
Convert it to a curve, NOT MESH. (ALT-C).
Add a curve circle to the scene.
Put the circle in edit mode and press the V-KEY to convert all the point to vector. This will leave you with a square.
Drag the points of the square around the text so a box is around the text.
Exit edit mode.
Select the square/rectangle and then the text.(Two curves should be selected)
Press CTRL-J to join the selected curves.

Now you will have one curve made up of the text inside a rectangle. Extrude the curve for your final result.

atom has suggested a way to actually cut the text out of the mesh. If you are happy simply to make the text transparent, then you can use an image of the text as a texture controlling the alpha value of the plane.

Best wishes,

That worked but I had to convert the merged curve into a mesh to extrude and if you select the text before the square it doesent work right.

Perfect tutorial. Work fine with Blender 2.56

actually you can set the depth of your curve object, so no need to extrude.