Get a good pair of tweezers. I recommend the handi-clips from Susan Pickering Rothemel (USArtQuest - usartquest.com). These are alligator clips on a paintbrush handle. OR the cool toolz from Suze Weinberg (schmoozewithsuze.com). These are non-stick.
Stamp on cd's with solvent ink (StazOn). Heat the cd where you want to cut it using your heat gun (wear protective goggles) and cut apart in pleasing shapes.
Or you could cut up the cd first then stamp it.
Using a Dremel or similar tool drill any holes for fun attachment points (fibers, jumprings, etc).
I then dip the cut cd into my melting pot, or you could cover the stamped, cut cd with versamark then emboss with clear UTEE or glassy glaze. When using the versamark/utee method it leaves the edges 'neater' so you can edge with a Krylon leafing pen.
After heat embossing immediately clear any drilled holes with a needle tool or a toothpick.
Remove tweezers/clamp and fix/correct this area with your heat gun.
Use Suze Weinberg's zap-a-gap or good superglue and embellish with faceted baubles - you can find these in all sizes and colors (yippie!) on the beading aisle of craft stores.
When I've embossed first then stamped into the molten UTEE I often use rub-n-buff to accent the stamped image.
Use E-6000 to attach a pin back & you're done.
HTH!