Vinyl Letter Blocks
After you cut the 2 by 4's to desired length, lightly sand the rough edges off. Paint the blocks black. Craft paint works great because it is cheap and it dries fast. Cut the paper to fit the blocks. Glue the paper on the blocks using a light coat of Modge Podge. Flatten the paper out with a sharp flat object. A credit card works great.
Add the vinyl letters, then Modge Podge over the entire block. I used the non-glare Modge Podge for this project.
That's all there is to it!