There are so many great bag projects on the net! I found this one for making a bag out of an old sweater. I promise that there is no knitting involved, but it does involve felting. Sewing is the main skill required so I decided to go for it.
Here is a picture of the moth-eaten Old Navy sweater that I am using for my bag, prior to felting.
I have since felted the sweater and cut it into pieces. The bag is a lot smaller than I had imagined because I kept cutting away parts to modify the shape. I am quite happy with how it is turning out. I will post more pictures when I get a little further along.