The stripe was the result when the image isn't showing on the fluer de lys dishcloth - the pattern is found here: http://www.knittersedge.com/Diamond/patterns/hkp97.pdf
If you just wanted to knit the stripes it would be all knit, switching the color every two rows and carrying the colors up the side of the piece. To get the size I did you would cast on 45 stitches, knit two rows in one color, knit two rows in second color, switch back to first color, etc.
The basketweave I just did from a stitch pattern and did about 4-5 repeats to get it the width and height I wanted.
Go for it! The illusion dishcloth was MUCH easier than I thought it would be.