I had this skirt that I think I inherited from my aunt about 10 years ago. It was pretty long and so I rarely ever wore because my need for long skirts is minimal. I did love the print though, and that's probably why it has survived in my closet for so long - it reminds me of the dresses Lorelai and Rory wears for Friday night dinners with the grandparents.
Enter summer holiday and I finally got to do something about it. My original thought was actually a sleeveless tunic, but it was long enough for a dress and so it became.
1. First you remove the elastic at the waist. Either by unravelling it or (if you're lazy) just cutting it off.
2. Then you need to cut holes for sleeves. I'd suggest you measure around your arm/shoulder to get the correct sized armhole, and then just cut down along the side-seam of the skirt in a straight line. Along the red lines on the sketch below.
3. Once the elastic is gone and armholes has been cut you can overlock the edges or simply zigzag them to keep the fabric from fraying and then stitch all the way around the open top to create a neat edge.
4. Create the shoulders by stitching together the two sides along the pink lines as showed on the sketch. For extra flair you can do as I did and tie a ribbon around the shoulder part to create a ruching effect, and also to make sure that it isn't too wide at the top.
5. OPTIONAL: Cinch the waist by adding a drawstring hem - blue line on the sketch.