Kathy Miller (of Michael Miller Fabrics) told me she would be doing this a couple of months ago and I've been dying to try it- starching fabric to your walls. She and her sister did a room makeover for Designing Spaces (scroll to the bottom of that page and you can watch the video). Of course, the show makes it look like it can be done in a little over 2 minutes. I would allow more time than that for your project.
Anyway, Kathy gives a quick explanation of it on her blog. The great thing about it is the fabric stays as long as you want, but pulls down with a little water when you are ready to move on. It sounds like a great alternative for apartment dwellers forbidden to wallpaper or paint! Or for those that don't want a long-term commitment with their wall choices. I'm sure the technique would work for fabric appliques on the wall as well. (I see visions of flowers and trees for children's rooms, scroll designs for living rooms). The great thing is it appears that the technique is infinitely redo-able (so mistakes can always be undone), the fabric won't rip like wallpaper, and someone on the web claimed you can wash the fabric when you take it down and use it for something else.
Kathy used Sta Flo starch for their project (the liquid kind, undiluted). If you can't find liquid starch at your grocery store (it will be with the laundry soaps and spray starches), you can make your own from cornstarch. The Argo Corn starch FAQ's say: "In a large bowl or pot, stir 1/2 cup of corn starch into 1 cup of cold water. Stir in boiling water (2 quarts for a heavy solution; 4 quarts for medium and 6 quarts for a light solution)." For these purposes, I'd go with the "heavy" solution.
Now everyone, everywhere can stick fabric to their walls. And if you do it, be sure to show me a picture in my Furniture DIY flickr gallery (again, Jessica and my projects are so lonely over there)! The fabric on the walls above, by the way, is Dick and Jane's Harlequin fabric. Where can you get that fabric? Hummm, let's see-- oh yeah, from me, here.