We here are Wordcandy are huge proponents of the Do It Yourshelf (DIY) movement. It might have something to do with our love of design, or the fact we think good design should be available to everyone... but most likely it's because of the fact that our income levels are just above that of the average college student.
The Washington Post Express did a great article this weekend on DIY books about giving your old T-shirts a new life.
They mentioned a couple of books that would be a great resource for getting started. Generation T:108 Ways to Transform a T-Shirt looks to be the best of the bunch. Author Megan Nicolay has a great website that goes along with her recently published book. It has monthly projects for you to try. (I love the idea of having a Tee party with friends to get together and work on your shirts.)