CuttleKids is the junior version of one of those expensive die cutting machines used to make shapes for scrapbooking. It is used for embossing as well, but you need to buy embossing plates separately. I've found a way to mimic those letterpressed cards without having to buy a bunch of special dies. I haven't found a way to add color yet, but I think this is pretty exciting. Although it lists for $30 I paid $15 for this on sale at Wal-Mart. It is on sale now at Michael's as well.
140 lb. cold press watercolor paper
thin metal objects like brass stencils or letters
The machine comes with 2 thick plastic printing plates; A and B. Cut the fun foam the same size as the plastic "plates" but cut 1/2" off the end so that the foam is shorter than the plastic. Cut the paper the size of the plastic. Make a sandwich starting with plastic piece "A", fun foam, paper, metal letters and lastly plastic "B". Line everything up at the far end. The front end will be missing the fun foam. This allows the press to "catch" the sandwich. Run it through the press front edge first.
Although this press isn't large enough to make a full sized card, the pieces can be glued, sewed, riveted, whatever to a greeting card for a letterpress look.
You can use most watercolor papers but I prefer to use the cold pressed as it is textured. The impressed design becomes smooth and contrasts with the background.