Recipe for salt dough:
2 cups flour
1 cup salt
1 cup warm water
Mix all ingredients together in a big bowl and kneed until play doh consistency. Use a rolling pin to roll out and cut out shapes with cookie cutters. I used stamps to decorate, but you could also let it dry completely and paint with acrylic paint. Punch out holes with small straw.
Air drying of salt dough can take up to three days. You could do it in the oven at a very low temperature (200 degrees) for 2-3 hours checking occasionally.
For upcycled wrapping use brown grocery bags. For the "ribbons" I used the rope handle from a shopping bag or yarn scraps. When looping the yarn through the holes use a piece of scotch tape on the ends to make a pointed tip.
For more images and crafts check me out at:http://www.thecheesethief.com/2011/11/salt-dough-ornaments-and-gift-tags.html