Oh, the tufting we will do.  I have been wanting a tufted headboard for some time now, but after checking out the hefty price tags that even the lower end versions carry, I decided to do it myself.  I've seen a few other headboard tutorials, but all of them carried a $100+ budget.  So, I set out to craft one- for only $60! The how-to is below.

YOU WILL NEED:(and if you have an aversion to Wal-Mart, which I understand, you can get these things elsewhere but they will be  a bit pricier)
2 twin-sized foam mattress pads (you can use just one if you want it less puffy)- $20
1 queen-sized flat sheet in a color you like- $11
4 packs of plain buttons- $4
1 giant upholstery needle (they are about 5 in. long)- $1
1 spool upholstery thread- $2
1.5 -2" thick batting (3' x 5') $12
2' x 6' 1/2" thick Plywood or particle board- $10

You will also need but likely already have:
A sharp serrated knife
a pair of strong scissors
some spray adhesive or fast-drying glue
a staple gun and staples
a drill an 1/4" drill bit
a square of cardboard approx. 8" x 8"
a pen (multiple colors of pens if you, like me, are prone to mistakes)
about three hour's time

First, take your foam bed covers out, fold them in half and cut them in half so that you have four equal sized pieces.  Spray adhesive on your plywood and stick one of your foam pieces to it (you may want to do this outdoors- spray adhesive has some pretty nasty fumes).  Cut around the piece so that it is even with the plywood beneath it.  Repeat this with your remaining foam pieces.

Next, plot your dots!  I decided to do three rows of tufts- didn't want to get carried away on my first tufting experience.  I used a square of cardboard (8" square).  Find the center of your board at each end and and draw a long line from one end to the other.  Put the point of your square on the line and about 3" in from the edge.  Mark an X on the foam at each of the corners of the square.  Keep moving along on the line, using your last X mark as your next starting point for your square.  You may have to adjust your measurements or square size- hence, the multiple pen colors. 

I traced a 3" wide circular lid over each of my X's (which, as you can tell, are many...).  Next, get your knife ready.  You'll want to cut at an angle so that you have a sort of inverted cone-shape when you are done cutting and pulling out foam.  This is what will make your headboard look nice and puffy, so don't be afraid to rip out those big chunks of foam!  Also, it doesn't have to be perfect.  Get a drill and drill holes through the plywood in each of your holes.  I used a 1/4" bit.  p.s. don't be afraid of the power tools! You'll feel mighty powerful when you're done!

Getting closer to those lovely tufts!  Lay your batting over the foam and holes, letting it drape over the sides.  Fold your sheet in half the long way and lay that over the batting, letting it drape over the sides as well.  Grab a button and thread (about four feet of thread, folded in half) and start at the end.  Find the button hole.  Stick the needle and thread up through the bottom of the plywood and through the fabric.  Thread it through your button and back down through the fabric through the back of the wood again.  I did this twice.  Then, pull the threads so that the button is pulled deep into your foam, making a tuft.  You can make them as deep or as shallow as you would like.

Once you have it pulled tight, you'll need your staple gun.  Staple the threads back and forth like below and then trim your threads.

It's starting to look tufty!  The tufts will make themselves (like magic!) You may have to tuck them back and forth to suit your taste, though.  They are pretty easy to manipulate.  once you have done all of your tufts, you will just pull the excess fabric and batting over the edge and staple.

Fold the excess fabric into straight lines to the edges.  You may want to screw some 2x4's on the back to attach to your bed or you can hang it on the wall (short screws!  You don't want any poked heads!)
And, VOILA! You have a cheap and cool headboard.