There are many, many ways you can make home made ornaments!!! You can do cross stitch ornaments, crocheted or knit ornaments and much more. Here are some books that have ornament ideas in them…
365 Christmas Ornaments
12 Days of Christmas, set of 12 ornaments, patterns pages
Ornaments Galore 2
Also you may want to check out pinterest for ornament ideas! You can make them out of recycled materials too…there are several ways you can make them with greeting cards for example!