While reading the 7KidsCollegeFund blog, I found a link to this awesome tutorial:
Bordering circles and ovals with your border punches
You can find another sample on the 7KidsCollegeFund blog:
7Kids card (it's the pink Tilda card - you have to scroll down past a few others)
I started playing around with the technique myself tonight. You do really have to cut almost all the way through to make the strip bendable.