I have just finished what I think must be the ultimate refashioning project (at least of those I have done). I took a knitted merino sweater, frogged it, plied the very thin strand of yarn together using a Navaho 3-ply method, stretched it, washed it, made it into neat balls of yarn and finally knit a shawl with it.
The shawl was the first I have ever knitted. I joined Historic Crafts Echo Flower Shawl Knit-along where we were all knitting the same Estonian Lace pattern by Jenny Johnson Johnen. This has been my most successful knitting project so far and I love the result. I have already started my next lace shawl project, which if you are on Ravelry you can see here. If you want to read a bit more about Estonian Lace knitting have a look in the Historic Crafts archive.