You put your title or whatever in a layer and then on top of it you put the patterned paper. Then hit Control-G or Layers - Group with Previous and it makes the patterned paper only where the letters were on the last layer.
If you want to add a border or something like that afterwards around the lettters (like a double matted letter) then you will have to link the two layers (title and patterned paper) and then Layers-Merged Linked. (Do this only once you are happy with the size/font etc of the title since you can't modify it once you do the next step.) Then you can go to Edit - Stroke (outline) Section and add a color border.
You probably were only asking about the first step, but it took me a while the other day to figure out how to do the second, so I figured I'd share that as well. You can check out the page I did this way in my gallery to see what I mean.
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