I think I found this tutorial through one of the link parties I like to visit. Making of T-shirt Yarn on the site Craft Passion. Here's the direct link: http://www.craftpassion.com/2009/05/recycle-tutorial-making-of-t-shirt-yarn.html
Mr. Pie faithfully offered up some t-shirts he wouldn't wear again ( I think maybe he thinks this'll mean less money spent on new yarn. tee hee hee)
And I made yarn out of it!!
It's a tad thick and thin, which might be because I can't cut straight to save my life. I'm thinking market bags maybe? What else would you knit with recycled t-shirt yarn?