1.  On each of the 4 sides of your larger piece of chipboard, measure and mark 3 1/4" from the left edge and again 8 1/4" from the left edge.  You should have another 3 1/4" left between the 8 1/4" mark and the right edge.

2.  Connect each mark, so you have a giant tic-tac-toe symbol.  The middle column should be wider than the side (and top and bottom) columns.

3.  If you've never tried cutting something like chipboard before, it might be good to practice on a few scrap pieces.  It's pretty similar to cutting fabric with a rotary cutter.  Here's what I do:

a.  Put the junky old cutting board under the piece of chipboard you want to cut.

b.  Line the heavy-duty metal ruler up with where you want to make the cut.

c.  Put your thumb and forefinger on the ruler with a fair amount of pressure.  Double check that your fingers don't overlap the ruler.  (You don't want to cut yourself.)

d.  Start with the knife at the top, put it right up against the ruler, and pull it towards you.  Make sure to keep your body out of the way, so you don't cut yourself when you get to the end.  Put some pressure on the knife, but don't knock yourself out.  You're probably not going to cut all the way through on the first cut.  In fact, I wouldn't even recommend trying.  Make sure not to move the ruler after you've completed the first cut, so you can cut in the same exact place the next time.  Repeat this step until you've cut all the way through the chipboard.  It usually takes me 3 times.

WAIT!!!!!  Please read through this whole step before doing anything.

4.  Now that you've had some practice at cutting, this is just a tiny bit more complicated.  You're going to cut along the lines that you drew in step 2 EXCEPT that you're going to lighten the pressure when you get to the middle section, so that you're only SCORING the chipboard there instead of cutting all the way through.  So start at the top, exert enough pressure to cut through, lighten the pressure when you get past the 3 1/4" mark, then increase the pressure again when you get to the 8 1/4" mark.  You'll still probably have to repeat 3 times to get all the way through the chipboard.  Repeat on the other 3 sides.  You will have cut out 4 corners and have Red Cross type cross shape as shown in the photo.

5.  If you haven't done so already, cut your 4 7/8" x 4 7/8" piece.  Just cut all the way through.  None of the scoring business from the previous step to deal with.

6.  Cut your fabric if you haven't already done so.

7.  Use your disappearing ink pen to measure and mark 7" in from the left edge and again at 12".  You should have 7" left over between the 12" mark and the right edge.  Do this all the way around.  Connect the marks, so that you have a 5" x 5" box drawn in the center of the fabric.

8.  Fold up the scored sections to form a box.  Tape the edges together close to the top as shown in the photo.

9.  You're about to start gluing, and it could get messy.  Slide a spare piece of chipboard under your fabric to protect your work surface from any excess glue.

10.  Squirt some glue onto the bottom of your box.

11.  Spread the glue around using your foam brush.

12.  Make sure you've covered the entire bottom with glue.  Wipe off any excess with the foam brush.  It should look like the picture below.

13.  Turn the box over and place it on the fabric in the center box that you drew in step 7.

14.  It should now be sticking to the fabric.  Pick up the box and the fabric, turn it over, and smooth out any bumps using your spreader, scrap of chipboard, or even your hands.

The next few steps are a bit confusing.  I apologize.  I tried my best to make them clear, but basically you want to cut the corners out of the fabric the way you cut the corners out of the chipboard.  On two opposite sides (Sides A) the fabric is going to be the same width as the box.  On the other two opposite sides (Sides B) the fabric is going to be a bit wider than the box.

I wish I'd thought of this BEFORE I took the pictures, but for ease of explanation, write the letter A on two opposite sides of the box.  Write B on the other two opposite sides.

15.  Turn the box back over and lay it and the fabric flat on your work surface.  Draw a line even with the edge of one box side A all the way to the edge of the fabric.  Repeat to the other edge of the fabric.  Do the same thing for the other box side A.

16.  Turn the box 90 degrees and make a mark 1/4" out from either side of box side B along the line you just drew.  Draw a line from each 1/4" mark to the edge of the fabric.  Do the same thing for the other box side B.

17.  Cut out along the lines.  See how the fabric at the bottom of the photo is the same width as the box?  This is a side A.  See how the fabric on the right of the photo is wider than the box?  This is a side B.

18.  Clip that little 1/4" section to the box as shown in the photo.  Do this on each side of each side A (4 times altogether).

19.  Cover one side B with glue.  Also cover a 1/4" strip of the adjacent box sides A with glue as shown in the photo.

20.  Bring up the fabric flap over side B and smooth it out.  Fold the 1/4" overlap over the adjacent sides A and smooth it.

21.  Cover the inside of this side B with glue.  Also put a bit of glue in the bottom of the box covering about a 1/4" strip near the side that you're gluing.  Also put about a 1/4" strip of glue on the adjacent sides A.

22.  Fold the fabric flap over that and smooth it out.  Use your spreader or chipboard scrap to make sure the fabric is nice and tightly tucked into the crease where the side meets the bottom and where the side meets its adjacent sides.  Make sure to also smooth out the fabric that's on the bottom of the box as well as the fabric that's slightly overlapping the side A's.

23.  Repeat steps 19 through 22 for the opposite side B.

24.  Now spread some glue on one of the side A's (where the fabric is the same with as the box).  Spread it right over the 1/4" of fabric that's overlapping and already attached from step 20.  Pull up the fabric flap up over the glue and smooth it out.  It should line up nicely with the sides of the box and not need any overlapping.

25.  Spread some glue on the inside of this side, over the overlapping 1/4" of fabric, and also a narrow strip on the bottom of the box.  Fold the fabric flap in and smooth it out.

26.  Repeat steps 24 and 25 for the opposite side A.

27.  You're almost done now.  Check your 4 7/8" x 4 7/8" piece of chipboard and make sure it still fits.  If not, trim it up a bit until it does.

28.  Cover that piece with glue.

29.  Center it on the 5 1/4" x 5 1/4" piece of fabric.

30.  Smooth it out.

31.  Flip this piece over, so the fabric is on the bottom.  Spread a 1/4" strip of glue on each edge of the chipboard.  Also spread a bit of glue in each corner.

32.  Fold the fabric edge over the glue strip.  If they haven't already, you're hands are probably going to get gluey here.  Just embrace it.  When you get to the part where fabric is going to stick to fabric, angle it in a bit as shown in the picture.  This way you'll get  a nice neat corner.  Repeat for the opposite side then for the other two sides.

33.  Put some glue in the bottom of the box and on the bottom of the bottom insert.

34.  Put the bottom insert in the box and press it down with your hands.  Make sure to get the corners, too.

35.  You might have a bit of excess glue like it did.

36.  You can just pull it out with a scrap of chipboard.

37.  Put something heavy in the box for a few hours (but check it every once in a while to make sure the heavy thing isn't sticking to the box).

38.  Fill it with cool stuff and enjoy!