I knitted the felted bag from the Debbie Bliss Home book. There are some great patterns in the book, and I would definitely knit this bag again, maybe tweak it a little to make the handles a litttle thicker. I do love it though and I have had a lot of compliments on it...which is always nice.
This is it before felting..




After felting...

And this is it lined.

There are other photos on my blog if you want to have a look!