A lot of folks use burlap, although I like a tighter woven, lighter fabric like silk or linen personally.
As far as the paper goes:
I cut a strip that is about 4" longer than bow and that overhangs each edge by 1/2"-1". I then cut it in half so I can work from the handle toward the tip. I moisten the paper with a sponge, saturate one limb of the bow with TBIII (being sure to cover every square inch evenly), and then working from the handle outward, lay the paper down and smooth it with my fingers. I work the air bubbles and glue globs toward the tip and edges of the bow. I make sure to keep the paper taught as I go. Then I lightly burnish it with a smooth, round object (like a small bottle) to seat the glue and help remove any tiny air bubbles. Then I do the other limb. No clamping necessary. It's easiest to do this before you round the edges of the bow over. However, you can do it afterward. Just make sure you get good adhesion along the edges. When it's dry, use a file to round the edges (or slightly re-round them, as the case may be), following by some sandpaper. This will remove the excess paper and give you a clean line.
If you'd like to stain the paper a contrasting color, do so before you trim it. Hope that helps ya!