I decided to try it out with my recently acquired Sale-A-Bration DSP 6x6 pack.It's so easy - just take a 6x6 piece of two-side patterned paper and then score at 2" on all 4 sides.
On the corner pieces score a diagonal so that it folds inwards.
Punch a hole in each of the 4 diagonal folds and insert a binder ring - or you can thread ribbon through the holes instead!
2/6/10 ETA: Angie has just posted a video on how to make this basket in 3 different sizes. So if you are visual learner check THIS out.
Thanks Angie for the inspiration!