This plugin creates a burnt-paper effect. It uses your selection as the original outline of the paper. It then creates an old looking piece of paper that is burnt around the edges and overlays the current layer atop this paper.
Here is an example of its output:

That image was created from a text layer and a selection that was larger than the text area:

Here is the plugin source file
Updated now to make more configurable and more scale-independent.
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Comments
another way
Start by making a new document, I used 500x500px with default DPI.
For a nice background effect, I filled the Background layer with #572513, and applied a few filters. The filters I used are thetrendystyle as follows:
Filter > Noise > Add Noise
Filter > Brush Strokes > Sprayed Strokes
Filter > Artistic > Underpainting
That's only in Photoshop
GIMP doesn't have underpainting, you have to manually create that effect (using canvas or burlap textures).
GIMP doesn't have underpainting
actually GIMP has this feature for some time ;)
Go to Tool Options for Brush and set mode "Behind" now you can paint on the same layer "behind visible pixels" - so any pixel with opacity below 100 will be touched
actualy this effect can be obtained easy manually painting Behind your letters
how :
1) create a new text object
2) apply Menu>Layer>Layer to image size
3) make a mask using the freehand mask tool - make a shape of your choice
4) select a Brush and in Tool Options select Behind mode and for the brush select opacity around 90
5) paint around the borders of the mask
6) take Bucket Fill tool then select Pattern Fill on Tool Options (and choose a pattern let say some wood)
7) Select "Behind" as a paint mode for Bucket Fill and the option "Fill whole selection"
8 ) click with the Bucket Fill Tool somewhere inside og your mask ..
9) Done
Suggestion for Patrick
Is it possible to code the script so that we can choose to add texture or not?
Graphically I am able to work around your script within GIMP, but it would be so much easier to have the script allow you the choice of those options. Just a suggestion.
burning region too small
Nice script but the effect fade out with large text (600-700 pt). The burning region should grow with the size of your selection, perhaps you should make it variable.
Agreed. When next I toy with
Agreed. When next I toy with it, I will make it settable and relative to the selection size.
add ons
Great script if there is a way to add choices of backgrounds instead of just paper texture that would make it even better :), lots of room with this one to add a lot more stuff even though its great as is.
Thank you very much
Source File Missing
You forgot to add the source file, Patrick.
Those wanting to try it can grab it at his website:
http://nklein.com/
Oops.. it stripped out my
Oops.. it stripped out my link... I'll attach it.