I started it about 2 months ago. And now it's done. Felted and everything! I am so excited. Here is a picture of it after I finished knitting it, but before I felted it. You'll notice it's about 30 inches long. Also, I had extra yarn and free time, so I made a small coin purse.
Tuesday night I felted it. Here it is afterwards. Now it is only about 24" tall. It shrunk quite a bit. The skull and crossbones are a little more squished than I would like, but still, I made it and it's the sweetest knitting bag ever!
Here are some close up shots of it after felting. It's amazing how much it changed. You can click on the pictures to see larger versions. Also, to see it as I went along, you can click the label "knit" below and see it there too.