Make little gift bags using book page sized paper - vintage childrens books are the best! but you can also use magazines or any other rectangular piece of paper. Make sure your folds are crisp by pressing down with the flat side of a butter knife (or any other hard flat thingie:) )
Joint both short ends together with a little overlap. Tape or glue the entire length (more overlap needed if using glue)
Fold over a 1.5 inch tab - this will be the bottom of the bag
Open the tab and fold both edges to form two triangles (make sure creases all align)
Take the bottom and top and fold them over towards the center to meet.
Tape the entire length making sure there are no gaps between the tabs. If you want to use glue you need to fold the tabs a little past the center line. Make sure they pass the center line by the same amount or it will be a bit wonky when you open it:)
Making the folds going up and down the bag. Fold one of the outer edges inwards. Making sure the points align and the width is constant.
Fold it again but towards the flip side of the bag. Repeat with other outer edge.
Gently open it and work the creases with your hands. Center crease should fold in.
If you were nice to your bag it will do this:
For a more detailed, (but probably more confusing) step-by-step:
http://urbannaturalhistory.blogspot.com/2010/05/diy-paper-gift-bags-upcycled-cheap-and.html