Remove the glass and the backing from the large picture frame. Cut a piece of felt that is 1 inch larger on all sides than the picture frame backing.
Set the felt on your workspace and smooth it down. Next to it, set down the picture frame backing, with the back side of it that mounts to a wall, facing down. Apply an even layer of photo mount spray to the felt and the picture frame backing. Let both pieces sit for 2 minutes to become tacky.
Pick up the picture frame backing and hold it with the photo mount sprayed side facing down over the felt piece, with 1 inch of the felt sticking out from each edge. Press the picture frame backing into the felt and smooth it down with your hands. Let it sit for 10 minutes to allow the photo mount glue to set.
Cut off the excess felt from the frame backing. Insert the frame backing, felt side facing forward into the picture frame. Do not put the glass back in as it will cover up the felt.
Make felt story book character stencils by tracing the characters on a sheet of clear overhead projector plastic with a felt tipped pen. Cut out the shapes, setting them on different colored pieces of felt than the color you chose for the background. Trace around each stencil with the felt tipped pen and cut them out of the felt. Draw faces on the characters as desired or cut out pieces of felt for the noses, eyes and mouths and glue them on.
Cut out pieces of sandpaper to fit on the backs of the felt pieces. Glue them down and wait 1 hour before using. The sandpaper will make the felt pieces stick to the felt board.