You start the booga with the bottom of the bag, then pick up and knit in the round for the main body of it. If you use eyelash at the top, use a strand of the wool with it so the felting of the wool will hold the eyelash tight and keep it from being floppy.
People have used the Paton's wool for felting other things, so it should work fine.
Also, the pattern says to pick up twisted stitches around the bottom. I don't think anyone ever does this, and it makes no difference.