I've seen kits like those- they are a good use for some crazy "novelty" yarns.
I actually just started a kit like that with my little one to make a purse. (the woven fabric is folded, stitched, then simply lined with a pre-provided pouch with handles) it has (pre-cut) crazy pink fun fur and something like Paton's cha cha in it.
you take your yarn/tapestry needle, thread it with desired yarn(s) then pick a row and weave it thru. The yarn doesn't need to be tied or knotted at the end, as the ends are used to attach the handles, but some kits I think have you leave long bits at each end to be made into fringe.
this kit we got at Borders in their kid fun section and it has little hello kitty buttons. But I've seen the scarf kits at my local JoAnns Superstore if you want a peek at the directions or the box.
have fun with it!
did I say one project at a time?