Does anyone know how i would go about making this look...is it gumpaste or fondant and how do i get that ridged edge look?

It is fondant cut into strips. You can either cut straight edges and then clip and thin to make the uneven edge, or you can use something like a deckle edge tearing ruler (often used on paper) plus some thinning (with a ball tool, back of a spoon, etc.).
http://www.myscrapbooking.com/Tools/Tools5.htm

Me again. There are cheaper ones than the link I gave. Just google "deckle edge ruler" or "tear ruler" or "paper tearing ruler." I also found this one:
http://www.joann.com/paper-tearing-rulers-12-/prd38679/?AID=10273743&PID=1609763&SID=tfc_-_16_10_120327_c7a8f8993c40e8b40910373c4b848283%3A0000&cm_mmc=CJ-_-9223372036854775807-_-1609763-_-Paper+Tearing+Rulers+12%27%27-Deckle+Edge

I used this tool:

http://www.kaboodle.com/reviews/orange-citrus-peeler-stripper

To do the ruffles around the hearts on this cake:

http://cakecentral.com/gallery/1923374/red-and-white

If you cut strips of fondant that has been rolled very thin and use the tool to ruffle and thin one edge a bit, then apply the strip to the cake ruffled side up and continue to do the same in layers all the way to the bottom of the tier you should get the effect you are looking for.
HTH

thanks for your help guys!