Knockout

In Photoshop, "Knockout" is a blending option, turning a layer to a kind of a "mask" for all underlying layers except for the Background layer (more about).

The "Knockout" script reproduces this effect in PSP.

1. Select a layer in the Layers panel that should serve as a mask. (On the screenshot 1, it's the text layer "LIFE".)
2. Run "Knockout" script.

   By default, the mask affects all the layers except for the botommost one (fig. 2).

3. If you want to "punches through" the backward layer as well, drag it into the layer group (fig. 3).