Source: Martha Stewart
Well-chosen compact discs are always appreciated gifts. Personalize the CDs by slipping them into delightful hand-stitched pouches. The soft envelopes can be used over and over, as sachets or as small cases for travel toiletries. You can also vary their size and shape to fit blank books, pencils, diaries, or eyeglasses.
These pouches can be made out of wide ribbon or felt. For a ribbon pouch, you'll need a piece that is 6 inches wide and 17 1/2 inches long. Make a small hem at each end; to make the hem, turn the raw edge under 1/8 inch, press, and stitch close to the pressed edge. For a felt pouch, cut a piece 6 1/2 by 17 1/2 inches.
With wrong sides together, fold fabric 5 inches from the bottom; press. Pin each side; for ribbon, stitch as close to edges as possible. For felt, use a 1/4-inch seam allowance; trim seams with pinking shears. Place CD inside, and fold top flap over. Finish with a wide satin ribbon tied into a bow or a velvet ribbon tied into a knot. Or tie two narrow ribbons into bows, using tweezers to make crisp loops.