This is a quick and easy little project. Plus, they make great gift ornaments because you can personalize them!
First, you will need to find a sacrificial Scrabble game. You can either track one down at a thrift store or yard sale, or use that old set you've got tucked away up in the closet. I guess you could buy a new set to use, but that seems a bit wasteful. The set I eventually found was an old one my mom had, and it was missing a bunch of tiles and one of the trays.
Step 1: Arrange your words
Step 2: Mark where to make cuts
Step 3: Make the cuts
Step 5: Paint
If you spray paint the trays, be sure not to go too heavy. You don't want it to run. A couple of light coats looks fine.