I do the felted wool sweater thing, too, GI! Have made pincushions (check out the gallery, I posted some there), hats, stuffed toys, and purses out of them.
The latest alteration thingie I did was to a really gorgeous men's shirt; the fabric was a black and white and gray geometric jacquard and from a very exclusive local men's shop. I sewed four fisheye darts into the back and two on each front to make it fit my curves. I wear it open over a tank or turtleneck and have gotten big compliments on it!
