Sorry, this is broken up into two posts. I wasn't able to add anymore pictures so I had to convert to using Flickr and my original post wouldn't allow editing so I couldn't continue with it.
3) Next, choose either contrasting fleece or use the same color, it's up to you. I like to use a different color just because I think it looks nice. Cut two long strips that are at least double the length of the hammock fabric plus about 10". So if your hammock is 12", double that would be 24" and you would cut at least 34" long strips. Make them about an inch wide.
4) Then you start at any corner about 1/2 an inch from edge of fabric and use scissors to make a small hole in the fabric through both layers. I like to use my small scissors for this task as they work better than my big scissors. (please don't look at horrible my nails look! I'm overdue for a manicure!)

5) Starting from underneath the fabric, push the end of one of your strips up through the hole you just made in the corner of the fabric. Sometimes it helps to use the point of the scissors to help push it through.
6) Pull your strip all the way through leaving about 5-6 inches hanging on the end. Then create another hole about 1 1/2 inches from the corner hole and bring the strip up from the bottom and put it through the top of the hole.
7) Continue punching holes about every 1 1/2 inches and pulling the strip from the bottom and putting in through the top of the hole until you get to the next corner. At the next corner, try to make sure you place your hole as evenly possible in the center of the corner and then keep going down the next side of the hammock doing the same thing.
8 ) Once you get to the second corner, just leave the tail hanging and pick up your second strip of fabric. The first strip's tail should be hanging downward, so start the second strip by pushing the strip in through the top of the hole and pulling it all the way until just a tail remains. Now you should have a tail hanging from the top and the bottom of that corner.
9) Repeat the same steps from above with the second strip until you get all the way around the edges of the hammock. When you're done with this part, it should look something like this:
10) Tie the tails on each corner into a knot. At this point, you can choose to keep the tails if you don't have any hooks for hanging, or cut them off. NOTE: Don't cut them yet if you're doing a corner hammock.
11) Now comes the fun part! Are you going to use this as a corner hammock or a rectangle one? If you plan to use it as a plain rectangle hammock, simply put some shower hooks in each corner and hang in your cage. Or if you don't have any shower hooks, you can cut two more smaller strips and tie them to the corners without tails and tie the hammock up in your cage. Be warned though! Ratties will sometimes chew the fleece strips holding up the hammock and it could fall. If you want to use this as a corner hammock, (which is what I did) all you have to do is fold it in half- the corners without ties together. Then if you haven't already cut the ties, tie the lower half to the upper half just for added stability. (then you can cut the ties) Thread your shower hooks into each of three corners and hang in your cage. Again, if you don't have shower hooks, keep the tails and cut one more strip to tie that third corner together and tie up in your cage. PLEASE NOTE: Amazon has these shower hooks for like $5.00 for a box of 50 and they really come in handy when you're wanting to hang things in your cage. They're very versatile and chew proof! Just go to Amazon and search "shower hooks" and you'll find them.
And that's IT! I hope someone out there has found this to be useful! I would love to see pictures of what you all create using this method. Please post them here!