EDIT: You're gonna need to full-view this despite the large load time because dA has been great and ripped out all the alpha transparency on the preview image. I don't know who made that conversion system but did they really think anyone would want all the transparent areas of their images turned to black? That's just stupid. And I don't care if you're using Internet Explorer 6. Get something else like Firefox, moron.

I hope this is helpful to someone and hasn't already been done (although it's so simple that I'm sure it has). Anyway, cut-out text is quite cool and I'm sure there are occasions where it would come in handy.

A quick note that I forgot to mention in the actual tutorial. If you want the cut-out text to be transparent for whatever reason (maybe to make it look like text really had been cut out of the paper) it only takes a couple of extra steps:
1. After you've added the drop-shadow, select the 'Background' layer and choose Layer > Transparency > Add Alpha Channel.
2. Select the layer with text on it. Choose the text tool and double click part of your text (click OK if any dialogs pop-up). Click the 'Create path from text' button again and then Select > From Path.
3. Select the 'Background' layer again and hit Ctrl+X.
4. Finally, select your text layer again and choose Layer > Transparency > Color to Alpha and change the colour to the exact same colur as your text.

If you found this helpful I don't expect you to it but a comment would be nice.

If you can't find the drop-shadow Script-Fu effect you might want to update to at least GIMP 2.2 (I'm pretty sure it's included with that). The other option is to download the script here and save it to GIMP's scripts directory.