Fold the piece of fabric in half. Cut a small hole close to the fold in the center of the fabric. Unfold the fabric and place the led in between the two holes in the fabric. Thread the piece of wire through the first hole, the whole in the bottom of the led, then through the second hole in the fabric. Tie the two ends of the wire together tightly.
Now all that is left is loading and firing. Turn on the led. Fold the fabric up around the bottom of the led to form wadding for the projectile. Stuff it down the barrel of your aerosol powered paintball gun and fire away.
The fabric acts as wadding on the way out, and also as a mini parachute on the way down. Wait for dark and enjoy!