Tint 1 1/2 pks. of fondant blue; reserve remaining 1/2 pk. white. Prepare and cover cake with blue fondant; smooth. Using second smallest star cutter, randomly cut out blue stars from cake. Roll out white fondant to same thickness as fondant on cake; cut out white stars and inlay on cake; smooth.
To make drape: Roll out and cut 1 pk. white fondant in two pieces - one 5 x 12 in. top, one 5 x 18 in. bottom. Tint 1/2 pk. fondant Red-Red and Christmas Red combination. Roll out and cut 3/4 in. wide strips to lengths of top and bottom pieces; position on white fondant, 3/4 in. apart. Roll red/white fondant to blend evenly together. Drape top and bottom pieces on cake, joining at side point of star.