What you do:
Cut out the center of the paper plate to make a ring.

With the whole puncher, pop out 8 holes around the ring.

Knot the yarn through each hole loosely.  Begin weaving yarn through each stretch of yarn, continuing until you come to the center of the ring.

Tie a knot here.

Add several more shorter pieces of yarn to the bottom or sides of the ring and attach (by knotting) feathers and beads.

Add another loop of yarn to top to hang your dreamcatcher.

Thanks to Kelly Hicks - Thunder Bay Indian Friendship Centre for her contribution.