Traced a squirrel outline with Sulky transfer pen, ironed image to knit fabric, stitched with backstitch and added a beaded (beady) eye.  Trimmed fabric and machine sewed to baby onesie.
Check my blog entry for more detail.  (My photos exceed the craftster 2MB photo upload limit.)
http://skitzoleezrastudio.blogspot.com/2010/03/whats-up-home-squirrel.html

I drew an outline of a Black Labrador Retriever on paper, traced it with Sulky transfer pen and ironed it on a cotton fabric.  Stitched the outline in backstitch and used the split stitch on green collar.  French knot eye.  Attached the fabric to tea towel with machine stitching and frayed the border.  The image was too bland so I shaded it with a color pencil then ironed it to set the color.


(You can see more detail on my blog entry because craftster's photo limitations won't allow my large file pics.) 
http://skitzoleezrastudio.blogspot.com/2010/03/theres-dog-on-your-towel.html

Wondered if the heavy cat food bags could be sewn in to totes like those juice bags.  Yep, it works!
The wallet above was cut and edged with bias tape.  Eeeeeee-Z!
Tote bag below is lined and has men's necktie recycled for strap.

The messenger bag is lined and includes a belt buckle to weigh down the flap plus a necktie strap. 

The vintage necktie was so broad that it could be folded over on itself to form a phone pocket. 

More detail at my blog entry http://skitzoleezrastudio.blogspot.com/2010/03/cat-food-messenger-bag.html

This is what I use - the cardboard boxes from flats of soda.  They are free for the taking at my office!  The rectangular shape perfectly contains magazine-sized tear sheets and can be stacked by slightly angling boxes with each alternating level.  Nope, it isn't acid free but I care not. 
Other uses:

• lap sized work space
• disposable painting surface
• individual work stations for group crafting
• beading tray
• kitty nap box

Here's my first attempt at crayon tinting with embroidery.  It was fun!  And easy.

Details on my blog

http://skitzoleezrastudio.blogspot.com/2009/06/3-bears-3-burp-cloths.html
(Images from Doe-c-doe's blog.)
http://doecdoe.blogspot.com/2008/07/thursday-embroidery_31.html

Fabric is sorted in stacking bins for HOME DECOR, DENIM & CANVAS, QUILTING and KNITS.
Silk yardage folded and stored in office style shelving unit.

Smaller cuts of cotton are folded and sorted in office card flip file.

Check out this wonderful fabric folding tutorial at this post by Happy Zombie.http://thehappyzombie.com/blog/?p=124

Check out my blog for organization tips!

[Quilt binding]

WOW!  Thank you so much for posting your scrap projects!  The applique pillows, headbands and quilt are fantastic!
I am a natural born hoarder and have an affinity for scraps because those were mine to sew into Barbie outfits when I was young.
Anywho, here are few items I've made with fabric scraps.  (My blog has a "scrap" category if you would like to see more.) http://skitzoleezrastudio.blogspot.com/search/label/scrap
Quilt binding

Small silk scraps sewn into strip

And made into a belt (Tutorial found at creative little daisy)

And tissue cozies made with upholstery samples!  Look around Craftster for the thread.

Every time I hear someone say, "There is no 'I' in 'team" it just drives me nuts because there is a "M" AND "E"!  So there!

And this is because my great aunt used to say that she loved funerals because she got to see and visit so many seldom seen folks.

The envelope style is really easy for newbies.  Both sides can look good.  This pillow back was pieced with a contrasting fabric.

Here's a link to a tutorial.
http://tinydecorblog.com/blog/2009/02/26/tutorial-easy-envelope-pillow-covers/

I spy lots of Burt's Bees on this swap!