Thank you Terry. I wish I could claim credit for the design but it's a Chan Geer pattern from his pattern pack. I thought about inlaying it into the lid but I wanted to go with the leather raised above the level of the wood, so I am using small nails to tack it to the wooden top. Kind of like you would with an upholstery tack, but I didn't want the large heads of an upholstery tack. The wood of the lid is only about half an inch thick and I've had trouble finding brass nails small enough to not go all the way through, so I think I will need to cut down some 1/2 inch brass nails (wire brads, actually) to make them short enough.
My original plan was to use Weldwood contact cement to attach the leather, but I stained the wood with an old based stain and now I doubt I will get a good bond to the wood. I will still use the contact cement, but the nails will be what mainly holds it down.
I like the idea of routering the opening down and placing the leather flush with the surface of the box. If you don't accidentally stain that part of the box, I think contact cement would hold it securely enough not to need the nails. I will probably try making one of these again, and I may try doing that next time.
Bob