I told you how I read about this project on The Purl Bee. I'd also seen a lot of them on FlickR. But here are pictures to guide you if you want to make some fabric art.
Begin by ironing your fabric.
Then set your fabric within the embroidery hoop and tighten the hoop and pull fabric taut. I know that there are more vintage and artsy hoops out there. I didn't take the time to look for them but I'm sure you could find some cute hoops on Ebay. You could also paint the outside of your hoops white or another color (make sure you only paint the outside so the fabric still slips between the hoops).
Then you want to cut the fabric around the hoop so that it is long enough so that you can fold the fabric around the lip of the hoop.
You want to squeeze your glue so it is on the outer edge of the hoop. I used Fabric Fusion glue that is specifically for fabric. Then press the fabric down on the glue and edge of hoop. Do this all the way around the hoop.
Set aside and let it dry. Once dry, trim the fabric even closer to the hoop.
Hang and enjoy!