I'm using a button hole type method. Basicaly making a slit and pushing them through from the back, then glueing the little flap down. It's acctually turing out quite well and the fact that they are a little irregular gives it some great character.
Lime- Looking good. I suck at hems so, I can't help you there, but good luck.
I have five of 11 strips done on my Astrid skirt. Needless to say she will be the best dressed kid in her class this year.
Here are two angles to show you what it looks like.