Reply by Kent Shepherd

I just made some using styrofoam from tool packing. I cut a slit part of the way through on the table saw.
Then I put a little Titebond glue (don’t use CA glue—trust me on this!!!!) in the slits and forced the velvet in with a steel ruler. The principal is much like the link live4ever just posted. I wraped the ends, put a little more glue there, and tucked it in to the tray.

-- She thought I hung the moon--now she just thinks I did it wrong