Take clothing apart, wash in hot water, cut into strips, roll up and stitch closed.
Sew them together and voila!

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Can you elaborate on how you stitch the circles together? Just a long running stitch that connects where the circles touch? Maybe a close up of the back, and how you assembled it, would be helpful.
I guess, since there's so much depth to it (the width of your strips) you could also sew the circles down to a mesh mat. If rubberized, that would help keep your rug from slipping (otherwise, a square of wool like this could be deadly for kids and old people on a wood or lino floor).
Again, looks GREAT. Thanks for the inspiration...
The 'flowers' are stitched together with a star shaped stitch. You know, draw an A then finish. Start at the lower left up to the top, down to the right, up to the left, straight over to the right, then back down to the beginning(lower left).
The center was caught a couple of times to secure it. The sides are not seen so you can take big stitches if you want.
Once the flowers were made I smushed them all together, stitched them to each other as best I could and added more circles where needed. Then stitched it all to a black piece of foam core board.
If I were to make one to actually use on the floor I would DEFINITELY use rubber backing to keep it from creeping.
My current project is here: http://i187.photobucket.com/albums/x183/cpurola/1-InProcess.jpg
So your wall hanging has me very inspired. I think I'll try some trivets or placemats to see if I really want to commit to something bigger.
Thanks again!
My next project will be made with wool coats.
Thicker wool makes bigger circles, bigger projects, faster. Just have to make sure I have a needle long and thin enough to stitch them together.
THEN maybe I'll put it on the floor. (g)
BTW, I stood on this one before stitching to the foam core board and it felt amazing. Like squishy thick soft springs.
WAIT, idea! Maybe I'll make soles for sandals! (g)