I recently dyed some wool with food colouring and wet felted it into beads. I strung it onto some necklaces with 2mm plastic coloured beads, clear thread and silver lobster clasps, O rings and earrings.
To make the beads, dip the wool into warm soapy water and then slowly roll it into a sphere. Speed up as it cools and hardens. It will shrink a lot.
You rip what you sew!