Turn those old treasured T-shirts into something new and functional - a quilt! This T-shirt Memory Quilt Kit comes with everything you need to make your own T-shirt quilt, and if you don't know how to sew, for an additional charge, the makers of the kit will sew the quilt for you. $75 at Uncommon Goods
How awesome are these wristlets? They are made from repurposed T-shirts (even the drawstring!) and you can get them customized with a word or your name (the letters are also made from T-shirt scraps!). So cool, and the perfect size to store your goodies. $14 at zJayne
How fun! Take an old T-shirt and turn it into something new - like undies!! This Knicker Making Kit/Pattern shows you exactly how to do it. I love that the kit even comes with embroidered "I Made These Knickers Myself" labels. $12.50 at Painter Girl
Have you heard of T-shirt yarn? You take T-shirts, make them into yarn, and then use it to knit or crochet. How cool is that? This site, Craft Passion, gives a nice tutorial on how to turn a T-shirt into yarn.
I love when people take something old and make it into something new. This one-of-a-kind Superman T-shirt for a small to medium dog (or cat!) was made from a brightly colored boy's T-Shirt. It looks super cool, yeah? $22 at Nutty Mutt
Oh cool - I love this pick. If you have a T-shirt that is ratty or is on the verge of being tossed (but you can't part with it yet), send it to this designer and she'll work with you to create a color palette to reconstruct the T-shirt into something new and fabulous! $60 at Toolgrrl