I machine stitched mine using a blanket stitch. The dark blue is a stiff felt with glitter embedded that gives the cover some body, but would be scratchy against the ipod. We (dear daughter and I) decided to make ours able to open up flat. It is stitched across the bottom to make a hinge. The cord hole is just a slit cut in the felt.
I had to line the back pocket so the ipod wouldn't scratch against the dark blue star...the layers of the back are (from the inside out) light blue star, batting, dark blue star, light blue rectangle the same size as pocket, but stitched down around all four sides, dark blue pocket.
[img width=500 height=447]http://www.craftster.org/pictures/data/500/medium/IMG_1420.JPG
[img width=424 height=500]http://www.craftster.org/pictures/data/500/medium/IMG_1418.JPG
[img width=500 height=452]http://www.craftster.org/pictures/data/500/medium/IMG_1419.JPG
That is so cute! <3 I made mine out of denim, but....it's not quite finished yet.