Homemade Christmas crafts, like the HO-HO-HO decoration, are fun and easy to make. The materials are free if you use old fence boards, like many of the projects on mycarpentry.com.
The letters in the table top display (above) were cut from 4" fence boards, painted red/white, and were attached together using 1" decorative hinges. The widths of 4" fence boards vary slightly, but as a general rule, you can use the dimensions shown in the diagram below.
The lengths of the letters can be cut by a mitre saw or circular saw. The letter shapes can be cut using a jigsaw. Cutting the letter H is obvious enough, but to cut the inside of the letter O, first drill a hole in the middle of the letter large enough for the jigsaw blade to fit in.
You can also paint the letters red/green. You can attach them together vertically and hang them on a wall, or from a ceiling or tree. The letters are attached together by wire threaded through 1/8" holes drilled 1/2" in from opposing corners.