Here are a couple of miniature rugs I have for sale on Creative Stores. They are made with from fine wool and a punch tool, creating a small looped pile and then backed with iron on backing to prevent the loops pulling out.
http://www.creativestores.co.uk/Miniartworks/Miniature-punched-teddy-bear-rug.html
I also have a tiny sewing box and a painting on the same site