Create a polygonal torus with lots of faces. Make the Mordor letters by creating a plane, using the split poly tool to design it, then extruding the faces back to make them 3D. When you select the faces and choose Edit Polygons>Extrude Face look in the channel box to view what you can make the extrude do. Near the bottom is Keep Faces Tog. Make sure this is set to on so the faces stay together. After you have created all the letters, position them on the ring and boolean. This will create the engraved writings of Mordor onto the ring. As for the shader, I would recommend the gold shader from Denfographics.com.