Duplicate the banner to a bigger blank area, add stroke as much as you want on the outside, put the fill to 0. Flatten image, duplicate the bg layer, delete the bg layer, use the Magic Wand to cut out the white, emboss the layer, then put the banner back in under it. If you want the cuts in, do it before you add a border to the regular banner.
The "metal" border sucks. Other than that it's okay.
As for the way you did it. You did it the hard way. You don't have to do all that make the fill 0 and crap, just make a new layer, put it under the banner, then select the banner and expand it. The you can just fill and edit, no opacity crap is needed.
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