Thanks Bill. (did not see your proper name earlier)

I could not open your .xar file earlier!
Don't know why but have done so now and can see that the shadow is only applied to the circle and can easily be removed.

The 'C' is however, is a bevel and does not quite give that cutout effect.

In the meantime, I have found Eyecandy 4000 that gives a cutout effect.
I also like what Bob did but could not replicate his eliptical transparency.

So far, many thanks guys and I'm sure there are many other ways!!!

Much appreciated.
Rik.