Okay...there are a lot of these cute things sailing in the blogosphere (see examples) here, here, and here but someone asked me to make a tutorial on how I made mine, so here goes. First, find a piece of driftwood that gives the impression of a boat hull, and a stick long enough to make a mast proportional to the hull.
Drill a hole midway large enough to accommodate the "mast"
Glue the mast in the hole and let dry thoroughly
Lay the boat assembly on a "doubled" piece of scrap fabric
and draw the outline of your sails (easier this way to make sure
the sails fit the shape and size of your "boat")
cut out the sail 1/4" larger than your drawing and sew
along your marks. Trim corners, turn right side out
and press. Topstitch close to edge if you want.
Using twine, or thread or kite string, "rig" your sails to
the mast. I just pushed a darning needle through both layers
of the muslin sail and tied a knot around the mast top and bottom.