I could use some tips from Illustrator experts

[crashwg]

Arrrgg, this is the second time posting this due to an internet hiccup so it will be short and to the point. 

Favor for friend.  She wants invitations similar to attached picture.  I don't know how to do effect like "Surprise" in the middle where it is just the shadow, is transparent to the background and cuts through the black oval where it overlaps.

Please help
Thanks

[Richard_Nixon]

Thought I had a better idea, didn't work.

2nd Idea:
You can always flatten the image at the end and then get rid of the stuff inside the text.

[crashwg]

You can always flatten the image at the end and then get rid of the stuff inside the text.

I suppose that would work.  I'm sure there is a better way so for now that's plan B.

[zorg]

Type your text using th font you want
In the color panel set the text outline to the wanted color, set the iner to transparent and voila

You may also want tp play with some shadowing effect

[knohbody]

Hmm. What I would do is this.
Layout everything else first. Do your text, make the stroke the color you want, fill should be transparent. Group everything you want the text to cut through 
Select your text, ctrl-c to copy, ctrl-f to paste in front, ctrl-shift-o to convert the text to outlines.

Now shift click the group you want to cut to add it to your selection.
Open the pathfinder pallet (window, pathfinder) and choose subtract, then expand.
This should subtract the shape of the text from your group. Since it uses the copy of your text to make the cutout, only your original will remain. It will also move the group to the front, so you'll have to right click on your text and hit arrange,send to front.

If you have trouble with this, make sure your copy of the text is on top of the group you want to cut. Otherwise it will try to do the opposite of what you want.

[elkameleon]

Hmm. What I would do is this.
Layout everything else first. Do your text, make the stroke the color you want, fill should be transparent. Group everything you want the text to cut through 
Select your text, ctrl-c to copy, ctrl-f to paste in front, ctrl-shift-o to convert the text to outlines.

Now shift click the group you want to cut to add it to your selection.
Open the pathfinder pallet (window, pathfinder) and choose subtract, then expand.
This should subtract the shape of the text from your group. Since it uses the copy of your text to make the cutout, only your original will remain. It will also move the group to the front, so you'll have to right click on your text and hit arrange,send to front.

If you have trouble with this, make sure your copy of the text is on top of the group you want to cut. Otherwise it will try to do the opposite of what you want.

+1 to this method.

[crashwg]

OK, so I've managed to get the background image on the face of the letters.  I'm now stuck on getting the letter's outlines to be thicker on one side than the other.

Thanks for the help so far, this should be all I need to finish.

[elkameleon]

im assuming you are talking about stroke location, while I don't have illustrator here in front of me, you should have the option of setting it to either inside, outside, or centered.

[knohbody]

retro by knohbody, on Flickr

Something like this?
Select your text. Ctrl-shift-o to convert text to outlines.
Ctrl-c, ctrl-f to copy and paste in front.
Make sure this new text is selected, then offset path (object, path, offset) play with the values till you get the size you want.
Move that backwards (Ctrl-[) a couple of times.
Select your original text.. Make the fill color something else so you can see it. Move it to the left or right or caddy corner... then select the text and the offset text and use the subtract function on the pathfinder pallet again.
That should be it, let me know if you have any other issues with it.

[crashwg]

Thanks for all the help.  I doubt any of what I've learned will stick but I wasn't going for learning, I just wanted to get the job done.

Here's the results which I've blurred the location and phone number out of so nobody calls my friend or crashes the party... 

[knohbody]

Looks good. Glad we could help.

[elkameleon]

That turned out really well! Good job!