I made this necklace for the fabric jewelry swap awhile back. The beads turned out really nice, and I meant to do a tutorial right away, but didn't get around to it until now.
Necklace

Beads

Materials
16mm wooden beads
1/8" drill bit and drill
fabric scraps
glue stick
knitting needle
1/8" eyelts (found in scrapbooking section)
Hot glue gun
Drill out the hole in the bead to make it a little larger

Cut fabric, I started with 1 1/2" x 3", then trimmed to get it to fit, you want it to wrap around the bead with a little overlap and the top edges should cover the hole completely when you fit it in that direction

Fringe the long edges of the fabric, no precise measurements here, but I did find that I liked to fold it in half and cut both edges at the same time, then you know you are staying centered, and you have a little finger press crease to use as a centerline

Coat fabric with glue stick

Wrap fabric around wooden bead

Press strips of fringe down (if you are anal like me one by one going around the bead) after every 2-3 strips poke the ends into the hole wiith the knitting needle

Add the eyelets, I put them on the knitting needle (so I didn't burn my fingers) and put a little hot glue around it


Stick the hot glue loaded eyelet into hole in bead and repeat for other side

Pretty bead done!
I had some that I coated in modge podge and diamond glaze as well just to see what happened. Painting the coatings on with a brush made for a stiff kinda over starched fabric look and feel. However, dipping in the coatings made a smooth glossy finish that really lost the look of fabric. I would proabably coat before inserting eyelets. These were not coated, since it was for the fabric jewelry swap and I thought keeping the look and feel of fabric was important.