We are talking here about a 'structure' that would have to be thousands of kilometers across... creating it would be no easy feat.
I would suggest millions of Big Dumb Tractors (either "clanking replicators" or very effectively mass-produced) that utilise lunar titanium ore (such as ilmenite- common on the Moon) to create reflective titanium dioxide particles and dust them over a wide area.
The high reflectivity of the titanium dioxide will stand out very brightly against the low albedo lunar regolith. In fact, it could increase the brightness of the Moon considerably and even obscure the lettering with glare.
The 'tractors' could be 'herded' by a system of pylons/masts hundreds of kilometers apart, broadcasting radio signals. Inaccuracy on the level of single digits or even tens of kilometers would likely not be a big deal at this kind of scale.
Well...not every day I come across a question like this. :)
I don't really know much about this sort of stuff, so here goes. Given the radius of the moon is 1737.4 km (according to Google), and the surface area of half of the moon (assuming it's perfectly spherical and that we see exactly half of the surface area of the moon) is 2*pi*r^2, which is about 19 million km^2, we'd probably have to cover a few million square kilometers to get decently readable lettering on the moon.
Thus I shall assume that along with modern technology and a heckload of money, we also have essentially unlimited resources. (if we didn't, we'd probably have to virtually trash the earth to get this done)
Since the (full) moon is normally pretty bright, it probably won't be a good idea to make the letters even brighter than the moon. So that means we'd have to get some sort of really dark material and use that to make the letters. That way, on a clear night with a full moon, you should be able to see the word spelled out in dark lettering. You'd just have to make sure that the brightness of the moon doesn't cover up the letters (i.e. make really thick letters). ...so something like this? (except with '*' replaced with the actual letters)
It'd be an interesting way to play a joke on the Chinese during the Moon Festival...(of course, they'd have to figure out what it means, first, but with a project on this kind of a scale, they'd probably figure out by the time it gets finished).
@BreakingNYC(View Post) I'd say that a networked Von-Nuemann probe that uses runs genetic algorithms to create new designs would be the most effective way that I can think of at the moment. Basically, you send a few AI-controlled probes there, then the probes will mine the moon and create copies of itself, because it is running a genetic algorithm, each new probe will be better than the last one, the more probes there are, the more processing power available, thus the probe's quality increase with quantity, older models return to earth and are rebuilt into the latest versions. The probes are all programmed to synchronize their mining to form the profanity as four giant strip mined cavities on the moon.
A nuclear powered stationary laser (it's possible) causing nuclear fusion level plasma reactions when fired at the moon. simple, effective, and insanely fun.
It is quite simple, we take a large laser into space that has enough energy to melt rock and "etch" the word into the moon with the laser . after the rock cools, (it would take only a few seconds) it would be black and you have an easy relatively inexpensive (compared to some of the suggestions) way to put the word into the moon.