In the fine tradition detailed here, a recent project that I'm rather pleased with was to turn a very very long fine knit cardigan that I never wore into two useful pieces of clothing. Of course, the vintage doilie bits got involved as well.
The skirt I am particularly pleased with; it hangs very nicely and is quite flattering. I simply rolled and hand-stitched the raw top edge before threading elastic through and tying in a knot which I tucked into the tube. Hand-stitching seemed the way to go to avoid any trouble with stretching.