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1. Trace and cut wallpaper for lid and sides of lid. Place the box, top side down, on the wrong side of the wallpaper. Use a pencil to trace around the lid. Cut out the lid shape, adding a 1/2-inch margin for the tabs. Use tape measure to determine the circumference of each lid; add 1/2 inch for overlap. Measure the height of the lid; add 1/8 inch. Use these measurements to cut a strip of wallpaper for the sides of the lid.
2. Trace and cut wallpaper for box base and sides of box. Place the box base on the wrong side of the wallpaper. Trace around the base; cut on the traced line. Use tape measure to find the circumference of the base; add 1/2 inch for overlap. Measure the height of the base; add 1 inch for top and bottom tabs. Use these measurements to cut a piece of wallpaper for the base sides.
3. Prepare glue. Mix glue and a few drops of water in a dish until the glue is the consistency of light cream.
4. Glue paper onto box lid. Lay the box-lid wallpaper shape, right side down, on a covered work surface. Use sponge brush to apply an even coat of diluted glue to the paper shape, beginning at the center and working out to the edges. Center the piece of glued paper on the lid, smoothing from the center out. Fold the margins down onto the lid sides, using scissors to clip a tab every inch.
5. Glue paper onto sides of box lid. For the lid sides, apply glue to the wallpaper strip and press the strip onto the lid sides, letting the strip extend 1/8 inch beyond the lid bottom.
6. Glue paper onto sides of box. Apply glue to the wallpaper for the box base sides. Press the glued paper onto the base sides, keeping an even margin of paper at the top and bottom for the tabs. Fold the margins into the box at the top and onto the bottoms of the base, clipping a tab every inch.
7. Glue paper onto outside bottom of box. Apply glue to the box-base shape; center the shape on the bottom of the base, smoothing from the center out.
8. Let dry. Place the lid on the base and let the glue dry.
9. To give, place gifts in boxes and tie a ribbon bow on top, tying other decorations into the bow as desired.