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The scallop on top of the background is made quickly using the curvy pen tool. You should play with it. It is so much fun. When you double click a point you get rid of the curve. Practice a bit and you will see how easy it can be to draw with the curvy pen tool. I then filled my shape with color and used THAT to clip the plaid paper to by sitting the plaid paper on the layer above and ALT (OPTION) clicking the line between the layers in the layers pallet. You will see your cursor change when you hover over the right spot. Then just click. All done. :)
