(sorry about the poor quality photo, I did this after the kids were in bed!)
First you need a wire coat hanger and about 50 baubles of different sizes, I got mine in Wilkinsons for about £5 before christmas. Untwirl (if thats a real word) the coat hanger and bend it into a kind of open circular shape, it doesn't matter if it's not perfect, and bend over one end so it's in a closed up loop. Then start threading on your baubles. I just did mine randomly and it turned out just how I wanted.
To finish off I just threaded the open end of hanger through the loop end and then made a loop out of that and to close it up. To hang I just tied a ribon around the loop, which also hid the closure.
Ah so pretty! Please note this photo was also taken before Ethan had his whetabix :( poor runner.
Have good fun making it (and resisting putting up till christmas)!