Thank you all for your advice and help in the previous post.
I decided i would use tapestry wool and really pleased with the result. Don't look too close though, because I'm not too great with a needle, but have done my best. I quite like the irregular blanket stitch, but Lord did it take me hours upon hours to sew. I was still up at 2am determined to sew the whole bag.
The button i made too using a wet felting technique.
Hoping later in the week i can start adding beads and maybe add a little needle felting to the strap, plus a little bit of embroidery here and there. Then the bag will be finished... finally!!! Just have to learn embroidery now, but luckily theres lots of online tutorials around.
I know the bag has loads of faults and wish i could rectify them all. Maybe you see them , maybe you dont, but it really bugs me. Its terrible wanting perfection the first time you try something and wish i wasnt like this.