Find a nice wooden box with some detailing...
And nice hinges
...but not necessarily the best interior. I picked this up at a garage sale for $5
Find paper covering for your box. This is an old poster but use wrapping paper, tissue paper, newspaper or whatever. A small floral motif would have been my next choice
Pick out parts that you like and paint them a bright color to show them off, that goes well with your paper. I particularly like gold. Also run some paint around the edges where your paper won't cover
Measure up your box accurately to cut your paper to size. Make it 1mm smaller than the surface, and it fits well.
Cut paper to size
Use decoupage medium to stick the paper to the box..
Velvet time! I went with crushed, of a deep watermelon. Make sure its thin to make later manipulation easier. Make a pattern by measuring the inside dimensions of the box, and cut!
Run a line of craft glue along the top edge and the join of the floor and wall of the box. Fold over the top edge of the fabric for a neat finish
Repeat for the other side
I had an old cheese box which I couldn't help but paint gold and...
Start on some jewellery partitions. The possibilities are endless!