right, for threading it through integrated holes, do a yarn-over every couple of stitches along the bottom, then one on each end ie: knit 3 rows. knit 3, yo, knit yo etc to get the bottom row, then k3, yo, knit to last 3, yo, k3 to create two columns all the way to the end. then thread a ribbon through the holes.
to attach a ribbon to the edges quilting-style, get a wide ribbon, fold it in half and sew it to the edge of your knitting. http://www.purlbee.com/sewing-knitting-tutorial/ seems to have a good tutorial on this.
let me know if that's clear enough, if not I'll give it another go.