Now.. Take the piece of wood you just cut, the piece that will eventually be your playing surface, and put it on top of your other uncut piece of wood. This other piece of wood will be used for the rail. Trace a line around the entire piece. Put an asterisk, on the same end of both pieces of wood on a part that will not be cut off. You'll need this to line up the pieces later. Remove the top piece, the playing surface, and cut around the lines you just made on the rail piece. 

You should  now have 2 pieces of wood that should be virtually the same shape and size. There will be imperfections, Don't stress over it.

Now.. Lets talk a little strategy here. This is where I got a confused. Your going to cut a ring out of both of these oval pieces of wood to make the rail. 

On one piece your going to cut out  a 5" ring from the outside of the oval. This will be the main padded piece that everyone rests their arms on as they are taking your money. You will also cut out a 1" ring from the outside of the playing surface. You will attach this piece to the underside of the 5" ring with glue and screws. 

You'll then upholster this piece you created and place it back down on the playing surface. The 1" ring should line up perfectly and fit snug on the playing surface because it was once part of this piece of wood. This will keep the rail firmly in place with no real need to attach it with bolts or screws, although some people choose to attach it. 

Here's a quick picture of the big picture:

Got it ? Enough Theory, let's get to work.

On to the next step