This idea was found in the Summer ’06 issue of Better Homes & Gardens’ Creative Home magazine.
They glued white buttons around photo frames and attached a ribbon behind before hanging them on the wall.
Also, notice the photos on the throw cushions on the chair and the photo on the lamp shade. Those look to be made using iron-on photo transfers to fabric. If you haven’t tried this before, you can get special paper that once you print on it, you can iron it onto fabric with pretty good results.
Here is one place where you can get the paper from. I’ve also bought it from Michaels in the past.