easy step by step tutorial to make a tasseled bag charm with pom poms from wool. Decorator's Notebook is a great source of craft ideas
Plaid pillow with large Santa, St. Nick, face on it wearing his plaid hat.
button purse - I love this! You buy a simple bag and decorate it with all sorts of buttons in all shapes and colours. I think I will take a book, recycle it into a purse. Then add fabric on the outside with the buttons.
Straw bag decorated with pompoms