It's actually pretty difficult to explain in writing - difficult meaning impossible - Those of us that have been taught how to fold stars always get a good laugh from the how-to's that are printed in the paper-strip packages; they are the most useless directions you are likely to ever see!!!
I'll try though:
You'll need four paper strips, about 12" in length folded in the middle and ends cut like in this picture:
Arrange them interlocking like this:
Pull them together -but not too tight:
Fold the upper layered strips over the centre square one over the other -but the last one goes over AND under:
pull and press -again; not too tight:
fold a triangle from one of the strips:
make a loop with the same strip and feed it under the locked strip -pull and squeeze it til it also becomes a triangel:
turn 1/4 round and repeat until you have 4 little triangles.
Then flip over and do the same thing with the last four strips.
What you have now should resemble this:
Now comes the tricky part (

)
On each side of the square there should be four strips kind of coming out of the square, fold them ever so slightly 'up' so they stand out of the square part.
I really hope this scan shows how it's done b/c it's rather difficult to describe: you have to fold (lightly, not as sharp a fold as earlier!!!) a triangle standing up on the square and loop the strip and put it under the neighbouring strip.
The strip will then come out of one of the flat triangular folds you did earlier -pull on this and a triangular pyramid-shape takes form standing on the square piece...
turn 1/4 repeat with the remaining strips on this side flip over repeat -you know the drill!
use a pointy sharp pair if scissors to cut off the remaining strips and your star is finished!
A ring of stars is made with eight stars, where you put one set of the side triangles into the 'pocket's of the next star (with a bit of glue)