Ok - so this isn't a papercut, but this IS my first ever attempt at creating a repeat pattern. My aim is to recreate something similar with a papercut pattern. I used the technique that's described on a tutorial on Design Sponge (thank you Moonflygirl for the tip!) and here's the result. Please bear in mind that my sketch is literally just that - a sharpie sketch! I scanned it and then coloured it in photoshop. Please click on the images for larger views.
Here's the link to the tutorial: http://www.designspongeonline.com/2008/05/welcome-julia-and-how-to-make-a-repeat-pattern.html