I just wanted to share this as I just did it this weekend.
I decided to recycle my house papers and make my own paper. As I was searching for an online 'how to' I came across this site that offers instructions for simple paper beads you can make out of the same pulp.
http://www.astorybooklife.com/how-to/paper-beads/
So I made a few and they turned out very well! Today I will drill small holes in them and paint them up with some acrylic paints.
I'm excited to see how they turn out when completely finished.
FYI, I didn't use any glue -- just paper and water and they turned out fine