The Acme Label Maker is freeware (in other words, totally free to use) and great for that 'Dymo label' effect.
It's a great web toy for creating labels - right on screen, nothing to download. Perfect for journalling, scrapbooking, cards, blog headers and backgrounds... virtually anything you can think of! And, being rectangular, actually easy to cut out with scissors, lol (although I think I'd be using a paper cutter or guillotine... I can't cut a straight line to save my life!)
Once you've created your text, left-click on it to bring it up full size and then right-click to Save Image As to your computer.
Here's my finished result. Rather smart, huh?
Good fun, give the Acme Label Maker a try!