The larger one looks fine too. You can perhaps think of adding some stitching to the letters - making it more patchy. A tutorial for that can be found here:
http://www.escrappers.com/stitchset.htm
Just from an observer point of view, the poster looks a bit bottom-heavy because of the woody frame you used (looking at it zoomed out). So you can either think of adding more elements to the top or to make a thinner frame on the bottom - maybe removing it completely and just adding something connected to the theme (banjos or something).
There could also be a bit of a problem as far as readability is concerned with the little band picture at the bottom. You can maybe try to add an outer glow to the text layer or a stroke - that'll separate it slightly from the background image.