This one involves knitting a rectangle (done), picking up all the stitches round it (done) and then knitting in the round in plain stockinette until you have a bag (doing). The picture here looks pretty good to me (although the bag only just fitted in the tiny square of sunshine I have in my flat at this time of day), but it just feels like it wants to be a bit longer - so I'm going to give it another inch or two before casting off.
Then I'm going to felt it. In a pillowcase in the washing machine, like you're supposed to. Then I'm going to block it by filling it with old videos. Because they fit, that's why.
I have no idea what I'm going to do about straps/handles - I'll play with it when I cast off and see what works best. I have an idea about embroidering it after felting, although I'll make decisions about this when it's done and I can see what I'm dealing with!