Here is a much more successful felt ornament. I decided to create a felt stocking and use some of my Christmas colored buttons to decorate.
Felt (use craft felt rather than wool felt which is thicker)
Buttons of various sizes
Stocking Template (I used a felt ornament from Michaels for a template)
Trace your template onto your felt and cut the shape. Make two.
Take one of the cut out shapes and sew your buttons onto this top layer. Be sure to leave 1/8 to 1/4 seam allowance so you can sew the top and bottom layers together.
Once all of the buttons are sew on, sew the top and bottom layers together. Leave about a one inch gap. Stuff the ornament with fiberfill to the desired thickness.
Sew the one inch gap closed. If you want to hang the ornament, sew a loop out of embroidery thread onto the top of the ornament prior to closing the one inch gap.