I've started making lotsa stuff for the upcoming holidays. One really easy, cheap item I've made is this fuzzy, boa scarf:

It's not a great pic, but it's basically a very long, ultra-fuzzy scarf. The great thing is that it's so inexpensive and quick (took me about 2 one-hour sittings) to make.
Here's what I used:
yarn: Splash brand ($10)
needles: #17
Here's how I made it:
I casted on 10 stitches and just did garter stitch (knit every row) until I got to the length I wanted. It's a little tough to get used to the gigantic needles and the weird yarn, but it's so fast! I even had quite a bit of leftover that I think I'm going to use as cuff yarn for some mittens.
For you Boston-types: I got the yarn at Woolcott in Harvard Square. They used to have a more expensive yarn similar to this, but check out the stock towards the back of the store.