This is a picture:

Some suggestions were:
looking up yarn (commercial homespun that lots of people use) on ravelry, and check out what patterns they make.
A suggestion I really liked was the Urchin hat from Knitty, which is designed for handspun like this, and doesn't use a lot of yarn.
I haven't tried it, because I can only knit on straight needles as of now, but once I acquire more skills I'll try.
here's a link:
http://www.knitty.com/ISSUEfall07/PATTurchin.html It's knit sideways, which seems to be working well for this kind of yarn.
Greetings,
Louise
EDIT: oh, I tried crocheting with it and that didn't work out too well for my yarn
crocheting into thin-yarn stitches with the big yarn was a bit difficult, and the hook size is difficult too choose.

























I'm clueless and frustrated. 









Yeah, the shadow of my camera. Sigh.









