http://www.myrecycledbags.com/2008/06/24/recycle-a-cup-into-a-plastic-bag-keeper/
Smart, recycling, and a fast easy project to do!
Another fun project is this blanket made from sweaters. I like the randomness of it, it reminds me of the crazy quilts my mom used to make when we were little. Not like the planned crazy quilts typically seen today. This one also doesn't require backing which to me sounds a whole lot easier. http://funessa.wordpress.com/2007/10/28/recycled-sweater-blanket-part-two/
Lately I have learned to knit, and having a lot of fun with it, however I like to look for alternative fun stuff to knit, not just scarfs, hats, and baby booties... branch out a little. I found this cute monster pattern at the KnitPicks website http://www.knitpicks.com/cfBlog/post.cfm/gift-idea-toys.