Well, let me end the suspense: it is a purse (see previous post for pictures of what was supposed to be a hat that was in the process of being felted).
This is the third felted hat I've made, and none of them have turned out well. One is two small, one (this one) is way too big, and the other, a beret, well, it just didn't make any sense.
The good news is that this one can be made into a purse fairly simply, and it should be a good looking bag. Hip Hop looks very cool when felted, and creates a wavy effect that I'd NEVER be able to get through yo knitting. I found another skein of Hip Hop while I was cleaning out my stash yesterday and so I'll icord a strap and felt that sometime.
MIL's placemats turned out terrific, pics soon.