Thanks!  I tacked all the pieces down with superglue and then sewed around the edges.

Amazingly I just got it at Jo-Anns.  Though unfortunately, I can't seem to find it on their website.  Doesn't mean it isn't there though...

Thanks for all of the positive comments!  You guys really got me going and I now present something even better than a long awaited tutorial... and actual pattern!  Available at : PinsandTomatoes.com  It comes with illustrated instructions and a stencil to make the whole project super easy and fun!   

Thanks so much for all of the positive comments guys! 

Working with the vinyl wasn't too difficult.  I used a regular 70 needle and that worked fine, though I probably should have used a 90.  The main issue was that I don't have a tephlon foot, so the vinyl stuck to the machine which meant that I had to go extra slow to keep the stitching at all even.  This really only came up when I was doing the applique, but it was annoying.  I've heard that you can also put wax paper in between the vinyl and the foot, but I needed to be able to see what I was doing very clearly.  So, get a tephlon foot guys!

The only other problem was the superglue.  It absorbs the dye in the vinyl, so you only have one shot at placing the applique.  Also make sure you use the vinyl that's smooth (not fuzzy) on the back.  The superglue just absorbs right into the fuzz and the result is a lot of furry vinyl stuck to your fingers.  :p

Otherwise, it was surprisingly simple.  I'll post a tutorial with pictures up in the next couple of days.

I needed something hip and padded for my new 17" laptop, so I whipped this baby up:

It is black and white vinyl lined with lightweight black foam.  Basically I just traced the outline of the laptop and then added 1/2" seams.  It has 1" sides and a top heavy duty plastic zipper.  I drew the pirate girl on the back of the black vinyl front and then cut her out.  From that cut out piece, I cut the features.  I glued a piece of white vinyl to the back of the black front and then glued the features in place.  Then I sewed everything down (get a tephlon foot!) and put the rest of the bag together.  If you guys want more detailed process instructions, let me know.  Overall I'm pretty happy with the result.

Wow, thanks guys!  I wish I had more of the fabric to make another one...

I just started using heavy duty snaps and really like the results.  They're secure and flash, but I always seem to mess up the tops.  You have to pound with it face down, so it gets all lumpy.  The package says to just tap it lightly, but then the snap is too loose.  Any suggestions on how to fix this problem?  

I am totally in love with my rotary cutter!!  Once you go mat, you never go back.  

I find that it makes my projects come out better overall, because I can cut very precisely.  Never a wobbley edge again!

I got an Olfa mat and cutter.  It was the only brand my local fabric store had.  I'm sure others would be fine though.  

What really amazes me is how sharp the cutter is.  The package doesn't lie- it really will cut through multiple layers of thick fabric!  No problem!

Wow, that's brilliant!  I had no idea you could screen print on vinyl.  I guess it makes sense... just never occured.  

Totally awesome though, now I really want to try it!

mango- Thanks!!  

I didn't use interfacing and it was plenty thick.  However, there are two different weights of vinyl out there.  There's heavy weight, like I used on this bag, and then there''s light weight, like you normally see in PVC clothing.  I would say that if you're going to use the light weight, you should use an interfacing.  It's all personal preference though.  Go for the stiffness you like.