Is it possible to make a hole, or gap in kitting?
I had in mind to make one in this cellphone pouch I'm knitting,so I could easily see the time.
sure...maybe you want to try one of the iPod cozy patterns that are out there.
check out Amy's video for the "1 row button hole" on the advanced techniques page
If you want a bigger hole, you can bind off a certain number of stitches, use two separate strands of yarn to work up the sides of that gap and then cast on the same number of stitches across the top and go back to using one strand.
If you're felting it, you can cut the window out afterwards so that if fits perfect.