May I Present...

...the Celtic Tote!!!!

Before the bag was felted.
After felting, you can see the way the cable is softer and less defined. I had to go in and sort of pull at it a little bit and get it to stand up a little bit.
I love this fabric! It has a teal and brown color and was sort of patchwork. The wavy part in the middle is the bottom. (from Hancock Fabrics)
The lining all sewed in! I put a couple of pockets and a small zippered pouch too (not pictured).
The final bag! All it needs is the button closure.

Pattern: Celtic Tote, from Interweave Knits, Winter 2007.

Yarn: Cascade Ecological wool (1 skein - with a little bit left over); color #8087 (a medium brown); outline in Cascade 220 Wool; color #7822 (dark brown).

Needles: I think I used #10's.

Modifications: made the handle one more cable length than called for, and will probably re-enforce the handle with some cording sewn in when I make it to the fabric store (I don't have any in my supplies).