I'm new to Craftster, and to these challenges, but it is such fun! However, I apparently can't post a picture yet :-( So maybe the above link will work?
I made this from an old pair of my daughter's jeans. There was cute embroiderery on the leg, so I cut off the leg, sewed up the bottom and hemmed the top into a bag. Then I took off the ribbon belt that had come with the jeans and sewed that on to be the handle. It made a great little gift bag, that is now being reused as a purse! I'm thinking about cutting off the other pantleg and leaving it long to be a wine bottle gift bag :-)