To get the middle circle effect, I used one of the Tim Holtz embossing folder diffusers. They are really easy to use, just place them on top of your embossing folder and run it through your machine. It will allow everything to be embossed as usual except for the shape that is cut out of the inside of the frame, which in this case was the circle. The branch is the Martha Stewart branch punch and the ornament is the Spellbinders ornament.
The second card (below) is using the oval frame diffuser. My stamp should have been a little lower, now that I am looking back at the card. Doesn't look as off centered in real life as it does in the photo. Oh well.