They are also a great way to put old Christmas lights (found in almost any attic) to use, and to upcycle some colorful junk mail or other paper.
You will need:
*One or more strings of white or clear Christmas lights (I used a string labeled as "patio lights" that only had 10 bulbs)
*Sheets of medium to heavy weight colored paper (12"x12" sqaures work well)
*Two sheets of 8.5"x11" printer paper
Step 1: Make the Template
Tape the two sheets of printer paper together. Using the ruler and pencil, draw the template from the photo onto the printer paper. The solid lines indicate where you will cut the paper. The dotted lines are where you will fold the paper. Take a look at the close-up photos for the demensions. I originally pulled the template from a similar project. Here is where I found it: http://www.oncewed.com/wp-content/uploads/2009/07/template_lightedpennant.pdf
Step 2: Tracing and Cutting
Trace the template onto the larger sheets of colored paper. I found it useful to draw in the dotted lines as well. Make sure you trace on the side of the paper that will be the INSIDE of the lantern.
Cut out the lantern.
Step 3: Poking Out the Design
Using the nail, poke holes in the sides of the lantern. I only poked designs into one side of each lantern, but you can do two or all three sides. I found it useful to put the lantern on the carpeted floor while I poked holes to avoid any damage to a desk or table. Be creative here; you can use flowers, birds, initials, spirals - whatever fits your theme. You may find it helpful to draw the design onto the paper before poking it out. Be careful to not poke the holes too closely together or the paper will tear completely.
This is now a good time to cut out the "X" on the top of the lantern. Be careful to not make it too large or the lantern will slip off of the light. Try 1.5" x 1.5".