Look over on the KG site…you can watch if you have broadband:
Or, if you like, grab a couple of needles and a bit of yarn you like–you’ll need less than half an ounce. Cast on enough stitches to go around your cell phone, even number preferred. (The cast on will be the bottom of the pouch. It should be connected.) Now: knit the first stitch; slip the second stitch WITH THE YARN IN FRONT OF IT (that’s the crucial part!), knit the next stitch, slip the next wyif, and so on until you’re out of stitches. Now turn the work as you normally would. Your first stitch should be one of those you slipped. Knit it, slip the next wyif of it, and so on right across. Do a few rows like this and poke at it. You should feel the hoollow tube you’re making. When the cell phone sock is big enough for yours, bind off one needleful of stitches, cut a long tail, run it through the other half of the stitches and tie it firmly, then run a lightweight carabiner or a split key ring through the stitch loops (easier than binding off and sewing it, isn’t it?)
If you didn’t get the idea from my description, find a video. It takes way longer to say than to show and there really is nothing to it. Mittens look way too big when you’re working them, because you have all the stitches together, but they’re fine when you start to cast off.