I'm guessing I need to get some string from somewhere to make streamers from the punched papers. Stuck.'
Agree. I was in the same trouble with papers. I was absolutely sure that I needed a rope or something like that to create flags or other decor.
I know you have both solved the paper punch puzzle, but for anyone else that's reading this and perhaps doesn't know how a paper punch works, the larger models usually have a little draw in the bottom of the punch that collects all the paper. You have to empty this occasionally or it gets full. Think about that.