As mentioned below I got this idea from greenbean's crafterole.
Step one: Gather some old gift cards (they make sturdy covers) punch holes in them with a Crop-a-Dial or a binding machine - I used my new Cinch and punched 6 holes in the cards.
Step Two: Punch card stock or in my case I had a draw full of note cards - which I cut down to 3 3/8" x 2 1/8" and punched 6 corresponding holes.
Step three: Clipped 6 O-wires - I used 3/4" wires (hint leave the little hanging piece on the end to attach it to the machine)
Step Four: Put on the paper as you want to use it - meaning if you want lines or are using decorative paper and you want that to be facing you when you open your little note pad - put that on the O-wires first!
Then put the cover on as you would see it in your purse.
Then lastly - very important put the back cover on - but back wards.
Step Five: If you using the Cinch - back up the O-wires so that the opening is flush with the back. Keeping your hand on the wires, take the free hand and lower the handle and stoop down and watch as the loops touch the closed area.
Step Six: Clip the little over hang wire and flip the back cover over and you have a completed note pad!