This is a well written pattern and includes links for tutorials for adding the beads. I used the method with the crochet hook and it went really well. I don't know if I'd like to do it for a ton of beads, but for this project, it was just fine.
The tricky part was finding the right size beads. There are quite a few websites that sell them, but the shipping is more than the actual beads. I was getting really frustrated until I happened upon this website. They are fast and the shipping is reasonable. I've purchased cross stitch supplies for my mom from them lots of time.
I used Knit Picks Essential Kettle Dyed in Oak that was in my stash. I did decide to change the foot and not knit the owls. I thought the beads would be rather irritating in a shoe and I didn't like look of the owls without beaded eyes, so I just did a few bands of knit and purl.
Jack really seemed to like them, although I do think he was a little disappointed that they weren't parakeets!
On a personal note, "Jenn" if you read this, I tried to answer your email, but it came back as undeliverable. I'm not sure why your computer rejected your own address, but the answer to your question is "no, I don't have any patterns that are as small as 35 stitches. Maybe you could just add an extra stitch on each side of your design as part of a border and use a 37 stitch pattern."