MP, was it fully wool? Maybe it's worth trying Mad Montse's suggestions for hand-felting?
I am working on tiny pieces for our bark-licking friend, to use in her bark-licking sessions. This has been fun - I did some cabling, and took pictures, to try to illustrate my neat quilting trick. Dunno if the explanation makes sense, can anyone tell me? It's \link{http://knitonepurlonefrogone.blogspot.com}.
I also tried picking up stitches to start from, making a thing out of different types of yarn, lots of i-cord joined together. And I tried a three needle bind-off too.
And I did some tubular knitting, made a little bag, put it on the blog.
And this evening, I made a mitred corner! I'd never done short rows before, well, not on purpose, anyway.
I am thinking about making a seamfree cardigan with the slubby stuff. Raglan sleeved probably. Maybe a copy of a cardigan I have and already like? Not sure. I'll probably keep the stitches simple, as the slubbiness will add enough interest to it ... visually, anyway. The tiresomeness of the knitting might drive me bonkers.
Oh, and I'm working on learning the Norwegian Purl! Which is continental, and very cool. You keep the yarn behind the needles!