I am soo happy with how this turned out! I knitted this for my friend's birthday on Friday, and I was afraid I wouldn't finish in time, but I finished with 4 days to spare... no sweat at all!
I went with Galway 100% worsted weight wool - mainly because they had the colors I needed in the quantity I THOUGHT I needed - now I have like 5 skeins left over - guess that means more felting projects for me! The lighter gray seemed to felt slower than everything else, but it all worked out in the end. It's drying right now, and what I am planning on doing is filling the bag with little gifties since she already knows I was knitting her a bag - the initials on it will be a surprise though!