Perforated Paper looks just like Aida cloth, but only comes in 14 count. I've seen it come in brown, ecru, white, green, and metallic silver or gold. The most common uses for Perforated Paper are bookmarks and tree ornaments. You stitch on the paper much as you would with cloth; however, the paper is not forgiving like cloth is. You must be very careful with your tension and with any knots. Perforated Paper has a right side and a wrong side; the rough side is the back. You can't put Perforated Paper in a hoop or on a scroll to stitch, so handle it carefully while you stitch.
You would use either a #24 or #26 tapestry needle to stitch on the paper, but if the holes are smaller you might need to use a #28. For backstitching, you may need to use a sharper Crewel or Chenille needle to get the stitches through.
Make your half cross-stitches and full cross-stitches the same way you would on fabric. For three quarter stitches, make a half cross-stitch, then bring your floss up to start your quarter stitch, take your needle under the half stitch, then carefully, without pulling your half stitch tight, put your needle back down through the same hole you came up through. Your quarter stitch will then be looped over your half stitch. The only way to do a quarter stitch is to use floss that matches the paper colour for your half stitch, then use the pattern colour for the quarter stitch.
Once you finish off your design, you can trim it through a row of holes to get a scalloped look, or along side of the holes to get a straight edge. Don't trim too close to your design edge or you could lose the edges of your design; a quarter inch border is usually sufficient. If you've made a bookmark, I would suggest getting it laminated so it doesn't get folded or ripped. There are self-laminating sheets available at office supply stores, or you can have it professionally done, which is relatively inexpensive.