Stuff you need:
Six pieces of scrapbook paper
Black and white stamp pad
Cut and sand the edges of your blocks.
Paint the blocks using craft paint. I used black paint.
Cut the scrapbook paper to fit the blocks. My paper was a 1/4" smaller than the block on all sides. Just enough for the paint to pop through the edges.
Apply the vinyl to the paper before mod podging onto the blocks. If you want to distress the paper with a stamp pad then do this now before mod podging the paper to the blocks.
Mod podge the paper onto the block and flip the block upside down to help keep the paper from curling up until dry.
Once everything is dry add a final coat of mod podge to the front of the block.
I ordered my vinyl from JK Vinyl Designs on etsy. She did an excellent job and was really affordable and quick. My lettering was 5" high. I found that the perfect block width for that height was 4.5". I also staggered the height of my blocks between 6" and 7.5".