Hi Laura!
It knits up nicely for a sweater, and it washes like a 'dishcloth', but it
takes forever to dry.
Make sure you knit and wash a swatch, or the babysweater will barely fit a
cabbage patch.

There were some patterns for totebags on the internet.
http://www.lionbrand.com/patterns/kkc-tote.html
http://www.straw.com/cpy/patterns/trio-knit-bag.html
http://www.sugarncream.com/pattern.php?PID=1133

And the Sugar'nCream site should has some patterns as well.
http://www.sugarncream.com/

Michaela (in Canada)