i really don't think its a problem w/ knitting during church, - if your church is a relatively casual one. i would nevernevernever knit in a catholic church, for example.
Yeah, it depends heavily on the atmosphere. I'm Catholic, and there's no way I'd knit in my family's parish. But there's an ultra-progressive church I go to downtown that's so friendly and laidback, I can't see them having a problem with someone knitting during mass.