The bag is done!! I can't even begin to express how pleased I am with the final result. I don't think the pictures can show just how well this bag felted. I was a little worried. I put the bag in the washer (top loading) with a pair of jeans and another pair of pants. I checked it about 8 minutes into the washing and it didn't look like it had felted at all. So, I changed the washing time to longer, added a t-shirt and shorts and just left it to finish the load. When I took the bag out I couldn't believe my eyes. It looks perfect! It is just right as a project bag. I'd have to say it felted to about half the original size. I have to get more yarn and make some more of these things.