I'm new at this but I remember seeing some kind of 'Spray on Felt' somewhere and now that I go back and try and find it I can't.  Is it real or did I dream it?

The guy cut his foam, then sprayed it with the 'spray on felt', then used a razor to make it even.  Because I remember so much about it makes me think it's real.

So is it real? And if so what is it and where can I get it?

Not for sure there is such a product .... I can not find a supplier.......here is someone on Flickr

http://www.flickr.com/photos/alycesantoro/4413726207/



you might be able to use a process called flocking

http://www.donjer.com

http://www.craftflocking.com

I've never seen or heard of "Spary-On Felt".  Pretty sure the flicker image is a gag gift.

There are spray on flocking for Christmas trees, but never heard anyone here mention using it. Perhaps that is what you are remembering.  http://www.craftflocking.com  This company sells a full line of flocking materials.

Wow, would that make thing SO much easier if it were true! Growing up I always thought that's how they made Miss Piggy...

Actually Miss Piggy is flocked or was at one time. Who knows what method they use now.

Perhaps you are thinking of shaving the fleece?