just used this tute to turn an unused pair of flares into perfect skinnies. didn't realize how long ago this was posted until i started looking through the other comments -- nice staying power!
thanks for the part about the bumpy knee. when it happened to me, instead of being all, WTF KNEE BUMP!?!?! i was like, oh, that's what she was talking about! i can fix this....
for some of the other people who posted about having problems with the new seam not staying, i just did a zig-zag stitch to kind of "finish" the edge that i cut. i haven't washed them yet, but i think that's the next best thing to serging the cut edge.
also, as for the inside seam vs. outside seam issue, i think that it really depends on which side has the over-stitching in the original jeans. going with the side without over-stitching makes it a lot simpler, but if you don't mind having to re-do the over-stitching then taking some in from both the inner and outer seams would probably be ideal.
thanks again for the tute!