Cabochons are very widely used nowadays in making jewelries. Because of the fact that cabochons do not have hole on them, most of the times they are being wrapped in wires to ensure they are properly attached and secured in place.
cabochon gem courtesy of indiamart.com
You can visit Craftzine Tutorial by Dev Khan for a detailed process. Other helpful tutorials are by Tammy Powley on about.com, towercrystals , and shoozles. Each step has been represented with photos for a clearer and easier instructions.
Just like any other DIY projects, all you need is a little bit of creativity, a little bit of imagination, lots of hard work, lots of passion, and lots of patience.
Photo from craftzine
You may also visit joefileman's wire wrapping tutorial video .
Tammy Powley’s Guide on About.com