Here are the directions and a pic of the pile of flesh, finally!
I made a template of the handle I was using by measuring it then drawing it on some tagboard with a compass. This makes it much easier to draw the cutout at the top for the handle and the facing.
Sewing it up!
1. Iron interfacing to wrong side of face fabric on body of purse and facing.
2. Sew side seams and across bottom of face fabric and lining. (following directions in Jordy's attack for the square bottomed bag)
3. Sew corners as in square-bottomed bag attack, however you can go ahead and sew both corners on the lining.
4. Put lining inside face fabric right sides together and matching at top of bag. Sew around top of bag, leaving the top half circles where the handles will go unsewn.
5. Turn bag wrong sides together by pulling though opening left at top of bag. Slip a piece of ragboard cut to the size of bottom of bag between face fabric and lining.
6. Baste lining and face fabric together at half circles on each side of bag.
7. Sew facing pieces (face fabric and lining) right sides together leaving top curve unsewn. Turn and baste top curves shut.
8. Cut a rectangular piece of fabric for closure loop and fold raw edges in, and topstitch.
9. Sew facing to body of bag right sides together, inserting closure loop between facing and body at the back of bag.
10. Flip facing to inside of bag, placing handles between facing and body and sew facing down by hand on inside of bag.
11. Sew button on front of bag.
And your done! I hope I didn't make this too confusing!