ok, it's not the best free purse pattern. I just wanted to illustrate that some wool blend yarns DO felt and create really interesting textured fabrics.
I subscribe to Berroco's free newsletter and occasionally they send out news of new yarns or new free patterns. This latest free pattern uses Medley and when felted, the wool shrinks and scrunches up the non-feltable fibers. Really neat effect: http://www.berroco.com/exclusives/toshiko/toshiko.html
Of course, you could create this effect yourself by carrying along a nonfelting yarn with a strand of felting wool, but I think it's kind of cool there are yarns out there that you can just buy a skein of and add to accent your project.
I also subscribe to YarnMarkets NL and they are quite chatty. I really like this purse - wish I could afford the yarn it's made from! http://www.yarnmarket.com/yarn/Cherry_Tree_Hill_Free-Silken_Mohair_Market_Bag_Free-2266.html There's also a free shawl pattern using this yarn - purty!
They also link to a worthy cause : http://www.sushiesque.com/adorablog/2005/11/how_to_knit_a_s.html