I have seen alot of different patterns for these, different weight yarns, etc. So I decided just to cast on and see if I could figure it out for myself since there are so many variables, like ornanment size. I bought some nonbreakable ornaments at Michaels.

my notes:
Judy's Magic Cast-On
Magic cast on 60 stitches each needle
join in round from off one needle
Leave remaining stitches on a circular
knit 3 inches
k2tog every stitch (30 stitches)
knit
k2tog every stitch (15 stitches)
knit
break yarn and run thru stitches weave in end

on other end:
do not join in round
knit
purl
k2tog every stitch (30 stitches)
purl
knit
purl
k2tog every stitch (15 stitches)
purl
break yarn leaving a long enough tail to close the small seam that will be there
insert ornament
sew small seam