I'm done! YAY! I was beginning to hate the backpack (purse/bag) because of the problems I had in starting it. But I'm pleased with the finished results and will be using it since I always carry a small backpack as a purse!
The primary lesson I learned in this challenge is that just because a felted swatch gives you one guage doesn't mean that will be the same guage on the finished project. In this case, the bag is slightly longer then it should be according to the guage from the swatch. There seems to be so many factors with felting that I think there will be a LOT of guess work.
There were a couple of firsts for me in making this backpack (purse pack?). This was the first time adding lining and sewing a zipper to knitting (I do not like sewing!)
My other project for the Knitting Looms Olympics was a felted hat design. I love it!
Here's the hat before and after felting...
Thanks to Isela and the other loom knitters for the fun!