1. First, remove all but the top layer of the paper napkin. Apply the motif to the piece of plywood by following the instructions found at Craftideas.info: Paper Napkin Decoupage Tutorial
2. Let the motif dry completely before continuing.
3. Now saw the motif exactly out with the scroll-saw.
4. Paint the sides of the motif with the matching colors and let dry.
5. For the glittery effect, draw lines around details with the clear glue.
6. Then shake glitter over the wet glue. The glitter will only adhere to the wet glue. Tap off excess glitter and let the glue/glitter dry.
7. Drill a hole at the top of the figure at a point where the ornament will hang straight (not necessarily in the middle, depending on the motif itself) and insert the wire from the backside to the frontside. Coil the ends at the front of the ornament to keep the wire from slipping through and at the other end, where the ornament will hang.