This is such a fun item to make -- you just need a clear envelope!
To make the scallop edge on my purse, I used the small SU! Oval punch and punched several ovals out of white cs. I cut the ovals in half and glued them to the inside edge to create a scallop "look". This sounds ridiculous, but it's really quite easy to do! I glued a white 1/2 oval over the top of the small ovals that create the scallop edge to create a "lining" for the inside flap of the purse.