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Adapted from an Illustrator tutorial I spotted somewhere and thought it may be of use to someone.....
1: Create the ribbon and place some text over the top
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2: Select the text and transform to a path (Shift+Ctrl+C)
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3: Now (with all of the text still selected) break them apart (Shift+Ctrl+K)
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4: Select all of the text letters and centre pieces (just ones with centre pieces eg. A, O etc)
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5: Path --> Difference to cut out the centres (Ctrl+-)
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6: To finish, select every 2nd letter and Lower the selection to bottom (end)
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Should be something like this (but better
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Could make this better by weaving inside O's etc but think you get the general idea. Hope someone found it vaguelly useful!