The enveloped background and lines are wider and taller than the duplicate capsule shape.

Select the enveloped lines with the Selector Tool. Click the top center control handle and while holding down the Shift key, drag towards the center. The Shift key constrains resizing so the sides move either together or apart the same distance.

Repeat this to make the width narrower. The enveloped shape should extend slightly beyond the capsule shape.

Place the capsule shape on top of the enveloped lines and background. Select the capsule and the lines and from the Arrange pull down menu, select Combine Shapes > Intersect Shapes. This crops the lines to the shape of the capsule.

Hold down the Ctrl key and click on the black outline around the capsule to select just it and not the entire contents, and set the outline to none.

Select the intersected lines and the background group, and send both to the back (Ctrl B or Arrange > Send to Back).

NOTE: Another way to do this is to select the intersected lines and press Shift Ctrl B to send the lines Backwards. This sends the selected object(s) back one layer at a time.

Select the Text Tool, click on the page to place the insertion cursor, and key in XARA ROCKS (it really does, don't you think?). Highlight the text by dragging the text cursor over it and click the Center Justify icon on the Infobar.

The font I have used is called Valken, and is available from Xara's BuyFonts.com or in the Fonts folder on the Xara CD.

With the text still highlighted, click the down arrow next to the Line Spacing text entry box until it reaches 70%. Click the right arrow next to the Tracking text entry box until it reaches 100%. Visually center the text over the capsule.

This next step is a bit convoluted and for it I apologize.

Make a duplicate of the capsule. With the duplicate selected, click the Shadow Tool and click the No Shadow icon (far left). Next select the Transparency Tool and select None from the drop down list on the Inforbar.

Now, copy the capsule (Ctrl C or Edit > Copy). Select the text and press Shift Ctrl A or Edit > Paste Attributes . This is Xara's equivalent to Adobe's eyedropper tool and is used to copy all attributes from one object to another. Including transparency. Your text should now look like the text shown here. Delete the duplicate capsule. Because the capsule had multiple special effects, copying and pasting attributes did not have the desired effect.