The video that comes with this blog explains it all... The programs that are needed are Minecraft (to make the project (DUH!)), Gimp 2.6 (it's a free program) (or other cool picture editors), and MS Paint.

First make a project. (Preferably on a single color surface) (I build my stuff above water)
Then press F1 and take a screenshot (F2)
Then open your .Minecraft folder to the screenshot.
Right-click the picture and click edit with GIMP.
Once on Gimp, click the fuzzy select tool (looks like a fairy wand sort of...)
Then click and drag on the single color surface until everything, except for the project is highlighted.
Then select the eraser tool and scale it to 10.
Then erase. (it wont erase the project because it's not highlighted)
Change the eraser color to any color you want and erase.
(What should come out it a lovely project with a lovely colored background)
Then save and re-open the picture with MS Paint.
Click on the text tool and choose all the fonts and other stuffz.
Click in the general area where you want the text and type what ever you want.
Then move the text to the exact point where you want it and click off of the text box.
Finally, save and the picture should be snazzy!