Tools and Materials
Fleece
Bowl filled with hot, soapy water (4 tablespoons of dye-free liquid dishwashing detergent to 6 cups of water)
Bowl filled with cool water
Toothpick
Embroidery floss

Felted Bead Jewelry How-To
1. Begin with a small wad of wool, then wrap lengths of wool tightly around it.

2. Keep adding layers until your fluffy ball is approximately twice the size you want it to end up.

3. Dunk the ball in hot, soapy water to soak it, and then gently roll it from hand to hand (but don't squeeze). Keep doing this for about 10 minutes, dipping as it cools.

4. To create stripes, work strips of wool into the ball with your fingertips. For dots, wind some fleece into a disk, like a cinnamon swirl, then dip and work it in with your fingertips.

5. After decorating, roll the ball in your palms some more, dipping if it cools. Stop when it has shrunk to the size you want. Rinse and let dry.

6. Use a toothpick to poke a hole through each bead before it hardens.

7. Thread bead on embroidery floss, tying a knot to space.

Resources
Wool fiber is available at halcyonyarn.com and peacefleece.com. The rainbow felting pack (21 colors) at Peace Fleece is $13 for 6 ounces -- enough to make a whole slew of beads.