Eenie, it is so much fun!  I just died when I saw the little shrunken sweater when it came out of the wash.  I didn't realize it would shrink that much.  XD  Oh gosh, that is so great about finding a use for tacky sweaters.  Maybe if I get a reindeer one this year...
Frogdog, there are TONS of styles/methods out there (you can even felt your own wool with no knitting), but I am probably going to use these instructions:
http://www.homemade-holiday-gifts.com/felted-slippers.html
Peep, ugh, it took forever to find sweaters tagged as being wool, and when I did, there were only two of them!
MN, haha, I will, but I think they are going to end up looking like something a first grader made.  D:
Franklin, I wanted to do that so much, but the only leather-y things they had were coats for 2o-25 (!!) dollars and one too small purse.  And I just died when I saw how much craft store squares of 'decorative leather' cost.  I went with...you know, I'm not even sure what it is.  XD  Some sort of black weave.
Gypsy, I am sure we'll all have a good laugh at my photos when I have some.  XD  Oooh my gosh, those ones in the links are awesome!