Someone on here not too long ago had the same question. The best answer she got was to follow the geletan instructions in the geletan bow tutorial that's kept a sticky at the top of this forum. Once the sheets of geletan are cooled, then take a hole punch and puch out your sequins! Not sure if the person ended up taking pictures of the finished product, but perhaps they'll post it here....
Perhaps you can cut out little pieces of fondant with a really small cookie cutter/fondant cutter or a hole punch? Then you can brush them with luster dusts/diamond dusts. Pinkcakebox has a picture of a cake with sequins they recently did- looks like fondant.
Here's a link. <a href='http://blog.pinkcakebox.com/'><img src='http://www.pinkcakebox.com/images/cake1173b.jpg' alt='Sequins on Dress waistband'></a>
Sorry, that link is working and I can't get the picture attached. If you go to
http://blog.pinkcakebox.com/ it's the Bar Mitzvah Dress Form Cake on the first page.
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