I also made these last winter for gifts. Hand-felted wool balls decorated into ornaments.
I started with some of my wool roving, formed a softball sized ball of roving, then dip in hot soapy water and felt into a small ball- not to tight, but enough for the ball to hold it's shape. Then let dry and hand decorate with thread, beads, dye, yarn- whatever else you can think of. Or try needle felting some decor on them.
Please see my rockymountainfibers etsy store for wool roving!