Anna Maria Horner has a tutorial on her blog for this felt circle garland:
I love garlands in general, and reusable garlands are even better. I love that this can be done in a color theme for a holiday (think how cute this would be on a Christmas tree in red and green) or in fun, bright colors for a birthday garland.
And even better, I think it would be cute hanging on my daughters footboard. That is, if she HAD a footboard. A cute way to add some color (and polka dots) to her room!