See the start of ArtistMike.com
Illustrator Tutorial - Cutting Letters In Half
Branching Point to Everything Else on ArtistMike.com
Contact Mike at: mike@artistmike.com
After you have selected everything... the line and the letters (letters that have been turned into shapes).
After you have slected everything you find the "Pathfinder" menu, click the first button on the bottom row. It looks like a exploding "egg"
 
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