3/9/08 I have made a change to Chart B to accurately represent the pattern. I'm sorry for any inconveniences this may have caused!
Materials: Knitpicks Palette, 1 skein Bark, 2 skeins each Blue Note Heather, Pool, Blue, Sky
Round 3: knit 33, bind off the next 20, knit 66, bind off 20, knit to end of round.
Size 7 circular needles
All stitches are knit double stranded, using two strands of the same color yarn.
Body
Cast on 175 stitches with Pool. Place marker, and join, being careful not to twist. Knit two rounds, then begin working Chart A in Pool and Blue Note Heather. Repeat the 6 pattern rounds 4 times, then work round 1 once more (so that you will end with the same round that you started on).
Change to Bark, and knit two rounds.
Change to Blue and Sky, setting the pattern for the middle panel. Work the pattern from Chart B over the first 19 stitches; Chart C for the next 8, Chart D for the next 33 stitches, Chart C for 8, then Chart B (starting where marked) for the rest of the stitches in the round. Place markers between charts if needed.
Change to Bark and knit two rounds.
Change to Pool and Blue Note Heather, working Chart A through once, repeating round 1.
Handle
Change to Bark.
Rounds 1 and 2: knit
Round 3: knit 33, bind off the next 20, knit 66, bind off 20, knit to end of round.
Round 4: knit 33, cast on 20 stitches, knit 66, cast on 20 stitches, knit to end of round.
Rounds 5-9: knit
Round 10: purl
Round 11-14: knit
Bind off all stitches.
Finishing
Fold handle fabric to the inside at the purl row, tacking it down with stitches.
Turn bag inside out, and seam the bottom with mattress stitch. Sew in all ends.
I felted the bag by throwing it into the washer with a few towels and running it on the "warm/cold" setting. I've got a front loading machine, and just let it go through the whole cycle. Once out of the wash, I stuffed it with a plastic case for a drill (hey, you use what works, right?), but plastic bags or other items could be used to help shape it.
Chart A
Chart B
Chart C