This link has been making it’s way around the blog-world for a bit. I found it on Anahata Katkin‘s blog who found it on the Free People’s blog who found it on Love Forever‘s blog who got it from The Purl Bee – the originator! They even give a tutorial here.
Anahata has a good idea about trying this – why not take old projects and cut them up to put in these hoops for display. Or you could make specific collages or mini layouts for them.