Alternatively, you could simply cut 3 sides of the curly label with a craft knife. I found it easier and less hassel to use the punch method in order to eliminate the risk of doing damage to myself if the craft knife slipped!
Here's the inside of the card. I stamped on scraps of Whisper White various images from Under the Big Top, coloured and cut out the images and adhered them to the pop-up mechanisms. The drapes were cut free hand from the Big Top DSP. I used images from Every Little Bit to stamp inside the peek-a-boo frames. I hope he likes it.