If you want to make a true circle skirt, you will have to cut it, sorry to say. Here is a link to basic circle skirt instructions: http://www.raqs.co.nz/howto/skirt.html
BUT there are other options. You could make a skirt using panels in the shape of rectangles that taper to your hip shape. If you wanted more "flounce" and "twirl" you could do the same thing using triangle shapes. This could essentially be the same things as your cirlce skirt. Another option is to us rectangular panels and add godets. This give the skirt a really flirty and fun twist and the possibilities of twirlability are endless. Here's a link to adding godets if you're interested. [ur]http://thesewingdivas.wordpress.com/2007/03/21/draft-a-skirt-with-godets/[/url]
I hope you are happy with your end result. It looks like you've chosen a really fun fabric and you could end up with a really cool skirt!