This was a gift for my sister, so I couldn't post it until I gave it to her. I used a beach tote bag pattern that I found on CrochetPatternCentral.com, and made a few alterations to make it work for my idea. First of all, I used Paton's Classic Wool with a size H-USA crochet hook. I also started with 12 dc in the ring instead of 8, and followed the the rest of the pattern. That way when I felted the bag, it would be the right size. In Round 9, I did a popcorn stitch every 4 dc.
Double Crochet Popcorn Stitch
YO, pull up a loop. Repeat 3 more times so you have 9 loops total on your crochet hook. YO and pull through all the loops..
I continued to throw in a few popcorn rows throughout the pattern to give it texture.
How did I felt the bag? After finishing the bag and adding the wide strap, I put the bag in a wash load of towels. I ran the Hot wash/Cold rinse cycle & extra detergent. I checked the felting job every 5mins to make sure I wasn't overdoing or underdoing it. By the time I took the bag out, the wash cycle was almost done anyway. I then put the bag back in for the rinse cycle. I dried the bag for 15-20mins on hot with the towels. It did shrink a bit more in the dryer. I am very pleased with the results. The pictures aren't the greatest- I'm working on getting a better camera (probably a higher quality camera phone... like a Samsung Epic or HTC Evo Shift). I forgot to snap a picture of the bag before I felted it, but here are a couple pics of the post-felting job.