Here is what I ended up using.
Banner Pieces (Something like this or cut your own) Modge Podge
Scrabpook Paper ( I used sheets that were already small. similar to this)
Single Hole Punch
Stick on Letters
This project is very simple, although it will take you a full day since the Modge Podge takes a while to dry.
First I glued the scrap book pages to the banner using the Modge Podge. I found it was easier to glue them on as whole sheets and trim once the glue had dried. I also noticed that my banner pieces were curling slightly. Before I trimmed them, but after they were dry, I stacked them under a large book and that seemed to solve the problem.
After each one is trimmed you will need to re-punch the holes through the paper.
Next apply the stick on letters. Now using a foam brush (a regular brush will leave stroke marks) apply a thin layer of Modge Podge over the entire banner and allow to dry. This will protect the paper and make your banner look nice and shiny.
Finally, run the ribbon through the holes and hang. Mine were light enough to hang with just a piece of scrap paper.
I think I may use this same technique to make a birthday banner.... one all my holiday projects are complete.