I recently finished my first kool-aid dyed skein - thanks in great part to the wonderful inspiration and wisdom shared here.
I used Lemon Lime, Berry Blue, and Changin' Cherry - just one packet of each, and the yarn is Knitpicks Color Your Own sock yarn. I followed Eunny Jang's great tutorial to make it self-striping. (Find it here - http://www.eunnyjang.com/knit/2005/12/techniques_selfstriping_yarn.html)
Check out the entry on my blog for more pix and details. It's here - http://curlymo.blogspot.com/2006/06/fun-with-koolaid-and-wool.html