It is glued after you do some clipping on the fabric pieces. I used a white wool felt as the padding, it was the perfect weight. You have to be careful not to get it too thick or the pieces will not fit together properly. They say to use white glue, but I used a glue stick that was acid free and dried clear. The jewels were the kind you appy with a tool that heats them. Also I will point out that the bottom stand/piece was is one I made to add on. As the bottom normally is a very small one. Thanks for asking.
I had many years ago made the fabric frames and little boxes, so I knew what I wanted to use before I started. There are many glues that would work though, if you wanted to have a good one that I have used the name is sobo. I made lampshades with it once and I liked it very much. To me the wet white glue is harder to work with and takes way too long to dry.
Oh one more thing ... I did glue the felt to the board first and trimmed it the edges. That way it isn't wiggling around while you try to cover it.