Hi, Dawn--
If I understand it correctly-- fulling is another word for felting.
I've been working on some felted bags, and I've seen a lot of people making felted slippers and clogs.
http://www.knitty.com/ISSUEwinter02/FEATfelting.html This article at Knitty has some good information on getting started in felting. There are also a lot of books out there on felting; most are a bit pricey, so I haven't bothered to buy any.
The whole concept of felting is to turn the knitting into a piece of fabric which looks like boiled wool. The process of knitting the wool yarn loosely on big needles, oversized for the yarn-- then washing it in hot, soapy water with other items for agitation-- this causes the wool to shrink. When it shrinks, the fibers on the yarn open up, and connect with each other, eventually forming a fabric without any "holes" or open spaces. You can cut out this felt with the same result as the thin, pressed "felt" you get from the craft store. The wool will felt as much as you want it too- when your knitting gets to the size you want it at finished, you take it out of the washing machine. Yes, you get to babysit the washer while you complete the process.
Back to the knitting process- let's say you would typically knit on size 7 needles for a gauge of 5 stitches per inch. For the felting process, you might be required to use size 10.5 needles, for a gauge of 3 stitches per inch.
Your knit felting has to air dry. You will need some forms to give it shape while it dries- I use whater I can find around the house (except the dogs, they are now onto my game and refuse to wear works in progress!)
http://www.knitty.com/ISSUEwinter02/PATTsuki.html This is a felted bag pattern at Knitty. You can see the knitted bag before the felting, then the final product after felting.
The important thing for successful felting is using the right yarn. Stay away from white wool- it typically does not felt because of all the treatments it receives to get it white. Most wool-acrylic blends will not felt (though Lion brand's Landscapes felts decently) but other blends like wool-mohair, wool-alpalca will felt. The soap you use in the washing machine will affect feltabilty as well. I use shampoo, rather than washing powder. Ivory soap is good as well for the felting. For agitation, jeans work well, and there are even some "weights" you can buy specifically for the felting process. In my short felting experiences, I like the Lamb's Pride wools. They felt beautifully!
Take care!