There are more and more knitting tutorials popping up everywhere from individual web sites, to retails sites to YouTube videos.
Here are some I found this morning featuring twisted cordings, picot edges, and wet finishing handspun yarns, here: http://www.tactilefiberarts.com/patterns
Also available is a free pattern for a ditty bag, using up all those extra bits of sock yarn, here:
http://maiaspins.typepad.com/maiaspins/2009/03/ditty-bag.html
Enjoy! These ditty bags are soooo versatile!