To make leg warmers out of a wool sweater, all you have to do is felt it, and then cut the sleeves off at the arm, straight across. It makes a kind of cropped sleeve sweater when you're done. I use pinking shears, but I don't think it matters. Usually that's all you need to do. Then pull them on the little legs and you're done.
For the cotton sweater, I had to make the tube a little narrower, so that it would stay up. Just turn it inside out and sew a line along side the seam, then turn it back right side out and try it on. Repeat until it fits, and then cut off your excess.
Then I had the bodies of the sweaters to work with, so I made this little bag first. I think it's fun that you can reach through the neck to grab something small, or lift the flap for big things.
Out of the cotton sweater, after much fiddling, I made this little dress for Anna. I'm pretty happy with it.
I posted all of this to Craftster. Eeek!